I gotta agree with "JSeery". I've done three flatheads from the ground up so far. The first was a 276" Merc about 20 years ago. It had a MAX-1 cam, a 390 Holley, and an MSD ignition. I didn't know then what I know now, so I just bolted a set of Offenhauser finned heads on. That engine ran OK, but I was never real happy with it. Last summer I did a 255" Merc for my '51. This one had a stock cam (heavy car) a 2GC, and a Mallory dual point. This one has a set of Edmunds heads. I have been paying attention to what the guys are saying here, so I spent a lot of time getting the heads to a uniform .050" squish". I don't know what the compression ratio is, but I have a healthy 170 lbs all around (stock is 110). I love the way this car performs; the engine has a crispness that was missing in the first one. I remember being disappointed in the performance of the first engine (it was in a '36 3-window). While this one won't blow your doors off, the torque is amazing; I don't have to downshift much driving around town if I don't want to. I just finished a 258" with a MAX-1 for the Hot Rod I'm building. This one has Edmunds heads on it as well, and I spent a bunch of time on this set too getting them just right. I only have test stand time on this one, but it has been great so far; it also has that crispness that was lacking in the first one.
With all this, I don't know if you can mill a set of Mercury iron heads and work them over to get the proper characteristics. You probably can, but with the time I had to spend grinding the aluminum ones, I wouldn't look forward to doing it to a set of iron heads.