The Stovebolt Site Forums The Shop Area Engine Shop 261 engine build questions

I'm preparing to build a 1959 261 engine for installation in my 1959 38 (1 ton) and have few questions for the engine experts here.

(1) I know that many 261 engines have had a 235 "848" head installed. Nevertheless, Is the power increase to be had by switching to the "848" head substantial?
(2) Could I obtain similar results be milling the 261 head?
(3) Is it correct that the 261 engine oiling system is such that hydraulic lifters can be used instead of the stock solid lifters (assuming a compatible cam)?
(4) Is the stock 261 cam okay to use with hydraulic lifters?

I know, lots of questions in one post. I just want to get this build right.

Thanks,
Steve