The 351 is going to be a lot cheaper than the 460. There are just so many more parts available for it. Just more people building them. The capacity of the 351 is going to be more about what block you use. You can get into the low 10s high 9s with a stock block. Around the 900 hp range with a nitrous setup. The best block to find is a late mode 351 block, because you can use stock style roller lifters in them. The old 351 blocks require a really expensive link bar setup for roller lifters. The funny thing is, the late model 351s never actually came with roller lifters, only flat tappet, but for some reason Ford machined the blocks for roller lifters. If you want to put a bunch of spray to it, you're going to need new crank, rods, pistons anyway. You might as well stroke it up to about 408 cid. How fast you want to go is going to depend on how much money you want to spend. You put a 2 bolt main 351 together with AFR 185s, a hydraulic cam, and an entry level intake, then you should be in the high 11s. If you build a 4 bolt 408 with Trick Flow Rs, a really nice intake, and a solid cam then you can make it deep into the 10s on motor. AFR 185s are about $1200, and the Trick Flow Rs are about $2800 just to give you an idea of the price difference.
I'd spend some time thinking about the transmission too. Seems like you are leaning more towards an automatic, which is the cheaper option, and honestly almost as fast if not as fast as a good manual. The C6 is a boat anchor, don't waste your time. There are some really nice C4s available out there that can hold up to a lot of power. I'm going to guess that a C4 for a 10 second car is going to run you about $2800. Add another $600 or so for a good converter. If you really want something stronger than a C4, I'd just go ahead and get a T/H 400. You're car is probably going to be to heavy to work well with a glide.
Kurt