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The 49 is an awesome motor! Don't listen to the haters!
I don't know how good you are at playing with ports, but if you are looking to play with ports, I would maybe start by at least matching the 75stinger specs. There are some 49 gurus out there that have all sorts of tricks you can do.
... Is this going on a race boat at least?

Couldn't agree more! Nothing wrong with a 49er.

Boomer junk that 260 and get the drag on!

Its not a race boat but it is a delta that I want to be able pass any of the 13's or the 14 thats around my cottage. Making it run faster then my cousins 15 checkmate would be the icing on the cake haha. The surf 60 we have is a sweet little 49, fires up so nice and just runs awesome. Both cases i have are 2.42 ratio, but have a buddy with a good nitro case were trying to get. Hes also got a ported 49 block that i might grab if i decide to go the 49 route. If my internals are all okay, and i can get the ported block for cheap id build it. The 70 or 75 powerhead i have would be a step up over the surf 60 which is really only about 50 hp at the prop, but only about 10-15 hp better. My delta is only running about 50 mph with the old surf 60 and a 19 pitch stock stainless prop. I got to run it a handful of times in the fall and that was it, we just got the boat together before that. Needs about 20 or so mph to be a real blast haha

just cleaning up ports, chamfering the exhaust And cutting the head to 150 ish would give you a good reliable motor, tons of blocks to be had for cheap. Jake can comment more he has a nice 49er.

Heres the hood from the surf 60, i dont have one of it complete right now. How big of a speed gain is there between a 56 ci powerhead and a 49ci powerhead on the 2.42 ratio gearcase? Between the powerhead and a nitro case it looks like theres 20+ mph to be had from this hull. So is it roughly 10 mph from gearcase and 10 mph for powerhead, then the last few are porting and fine tuning?

That's a very good reference. Back in the day when we raced 49 motors in EP the record was approximately 71 mph. Same motor with a big foot was in the 60 mph range. Many do it yourself porting racers did their own ideas and most failed . As most have suggested, you do not need to do a lot because the original is very good.

Its funny that you mentioned 70 mph Hounddog, the delta we own was raced by sandboy marine with the driver Dave Boychuk i believe. The boat set a record speed of about 68 or 69 mph when i did some looking. His name was painted on the top of the dash on the deck, you could just see the ghosting of his name and sandboy marine.

Jake ran 70 with a spec 49er on the critch set up to go roundy round

I could be wrong, but, I believe Dave is in the record book for a kilo or mile record.