51Cards, Yea man you have the middle Dodge Hemi there is a smaller one and it is the smallest at 241 CI. Your 270 is a good motor and it does have potential, but just don't think that you can go out and buy stuff for it like you can a Ford or Chevy. Hot Heads has a ton of stuff for these little motors
http://www.hothemiheads.com/
There also is Vintage Speed and they can help some with the induction system.
http://www.vintagespeed.com/
To be honest with you I personally don't see anyway your guy can build this motor for $1,500. But if you think you can trust him get it in writing and be sure both of you are on board with the quality of parts and the machine work. Another words cross all of your "T" and dot all of your "I's", be sure you and he understand the whole deal before you turn the Hemi over to him.
I build on my own about three or four Early Hemi's a year. I have to farm out my machine work but all of the rest of the labor is mine and I furnish all of the parts. And I only wish I could build one for $1,500.
Your little Dodge has some advantages to it is well. These are good and strong motors and building some more HP into one is not too bad. They only made an advertised 170HP from the factory and that was with only 7.6 compression ratio. Get your compression up a few points and there is some HP just waiting to be used., All of the early Hemis can and need more Cam, problem is no body makes cams for them any more. So you are in need of a "GOOD" cam regrinder. Here once again Hot Heads is hard to beat pricy but good work and they know what they are doing. Just check around there is plenty of information out there.
Now as to your tranny thing. While the Dodge 270 inch motor and its little cousin the 241 are the lightest of all the Hemis at 580 lbs that dumb cast iron 2 speed slush box tranny weighed at least 350 or maybe even 400 lbs. Ditch it, it robs and steals a ton of HP and its not worth much. There are adapters out there to install a TF 727 or any of the Turbo chevy,s or the 700r4, you also can use a ford tranny. There also are adapters for severeal of the stick boxes as well.
With a Hemi an Early Hemi you have to go back in time kinda and build this motor like they did in the 50,s and 60,s milled heads, log manifolds, reground cams and a lot of stuff is all there is for one of these motors, but you are going to have to think out side of the box. Man thats the cool part, you got to think your way around these motors. no calling up Jegs or Summit and getting the newest fangdangled part shipped out UPS for next day delivery. Its Hot Rodding 101 not just parts swapping-- its not for everyone but for those of us who love these old motors its the best.
Besides for a Early Hemi to be cool and I mean real cool all it needs to do is set on a engine stand in your shop for everyone to see. Try that with a Ford or Chevy motor.
Roland