You will love the 266 cam, but to get the best you do need some improvements to the head. In particular remove most of the valve guide bosses, especially on the inlet, smoth off the 'short side radius' where the inlet throat transitions to the valve seats and de-shroud around the inlet valves a bit. Then measure, calculate and skim the head to get the ideal compression ratio of around 9.5:1.
For the road, you don't need to spend a lot getting a so-called 'Stage 3' head. 'Stage 3' means very little and a small amount of work which you can do yourself will show a good improvement when combined with a nice cam such as a 266.
If the car was for competition were tenths of a second per lap are vital, then have a fully re-worked head, but for the road it really is not necessary, especially if you could start with a 295 head. Vizards book shows what you can do yourself easily.