Stock, the motor is rated at 255HP and 330TQ (assuming you have the 350). If you have the 305, ditch it and start with a fresh L31, or a good short block 350.
First, rebuild the transmission. The 4L60E can be built to handle a lot of power and abuse, just takes a little more money than a factory spec rebuild.
You will have a hard time making 400 for 'cheap'
For the motor, your going to have to do major motor work. I suggest doing a 383ci (bore .030" and longer stroke). Don't worry, you can run the fuel injection... Along with the new rotating assembly, get a good cam to complement the increased displacement (an LT4 seems to be pretty popular). The factory cam will work, but it will keep you from making power. You can run the factory poppet injectors, but if you go this far, just replace the injection with the Multi-Port kit (~$500). The MPFI conversion is a plug and play unit. Send your computer off for a retune. Many places will do it, just let them know the mods that you have made. Port the exhaust on the heads, this is the restrictive area. But while your at it, port the intake and intake manifold as well.
This will have you in the mid 300 area.
Your looking at $2000 easily for a decent 383 build. Just don't go cheap, or you will wish you would have done it right the first time.
Some headers and high flow cats will help expel the gasses.
Another option is a 355. Your gonna need more intake, head, and valvetrain work to hit high numbers.