Ok, here is the scoop on 400's.
1. The more it's overbored, the worse the overheating issue is. I don't know why exactly, but multiple people have told me this. They say .030 is as big as you want to go before the walls start getting too thin.
2. Like mentioned, externally balanced. No big deal, just get correct externally balanced parts. Non issue.
3. The heads, got to have steam holes and I would recommend going with better heads. No small block responds better to a bigger/better head than a 400, simply because it's trying to breath 400ci worth of air through the same head a 305 could potentially have from the factory.
4. You want a 2 bolt main block. 4 bolt main blocks have a lot of problems with cracks around the mains for some reason.
I would NOT buy a 400 over again myself, my 406 has been a PITA to keep cool. I have a 4 core BBC radiator and Flex a lite dual fans (those truck fan systems) and I have a hard time keeping mine under *200 in cool weather. In the summer it runs 210-220 no problem, with the A/C on and the engine idling on a warm summer day, the temp steadily climbs uncontrollably until I get it moving again.
Bottom line IMHO, 400's are not worth the trouble they come with. It's tough to keep them cool and you could just build a 383ci and have the same power output and run 180* all day long. 400's are just not a very good designed motor and I hate to say that since I'm stuck with one myself.