Good luck on your rebuild. I finished up mine last week and it was far easier than I expected. If you have any questions, feel free to PM me or post em up here for more responses.
Yes, you should have aluminum heads but good luck finding some cams. Not sure if the 206's are elusive as the H.O. Cams but when I was looking, I could not find anybody with stock. I was pretty happy with the stock performance so i just went with a straight rebuild.
How many miles on your old motor? What parts do you plan to replace and which are you going to reuse? I only ask because I replaced some that I didn't need to and reused some I shouldn't have. Valve lifters for example...my new engine is running strong but clicking away at an idle.
They aren't expensive and they won't take me long to change them out but it would have been much simpler to have done them during the rebuild.