Some say the 394 is meaner and the 395 has better torque... I have run the 395 at work some and have run some 394's as well. But not enough to be able to say which is better. Both are badass. In my inexperienced mind and eye for port layout, my theory is that the larger dual transfer ports on the 394 are more conducive for higher RPM and peak power where the quad transfer layout of the 395 would be geared more toward a wider overall power curve with a little less focus on peak RPM power. But transfer layout is only part of the game. I have yet to port a 394 but will be on my own 394 project soon and have not even been inside a 395 yet to know the exhaust timing, blowdown and intake timing. And those also play into what the peak power and overall power curve will be.
You don't necessarily have to replace your 394 carb with a 395 carb. You can modify the 394 to work with external pulse. Srcarr52 mentioned HL Supply selling a kit which I believe consists of the intake, pulse line, nipple to install in your 394 carb along with instructions on how to do so. I have not done one yet, but have seen the instructions, looks easy enough to me. But you can always just swap in a 395 style carb if you don't want to fiddle with it and don't mind spending the extra coin.
Are you certain your 394 cylinder can't be cleaned up and used again with a new piston? And I would also plan on doing crank bearings and seals. 394 has been discontinued for some time now, and IMHO it's worth another 50 bucks for the peace of mind that the bottom end bearings and seals are good to go.
And I concur with others on the base gasket delete, I have done base gasket deletes on two 394s I recently overhauled, both came in at .032+/- and run just fine.
