Re: possible engine upgrade
This is VERY general and second-handish information, but I think you are on the right track for a straight forward upgrade.
The AQ225 and AQ260 are in the same VP family, the AQ225 is a 5.0l (305CI) GM and the AQ260 is a 5.7 (350CI) GM. The external components and drive unit connections on each should be the same. I am basing this on the fact that they are both covered in the same VP owner's manual, and that they are same famly of GM small block engines used by VP in your vintage of drive/engine. I bet it is one of the easier swaps on the boating univers. The recommended drive ratio is more than likely same for those 2 engines, and you would probably be able to go up a pitch size if you are reaching top RPM's now.
As far as 305 engine being good, that is what you have now so it seems like it is peforming well for you! A 350 would be even better for a boat that size. Although I cannot give any real cost/effort to benefit realization analysis, I would bet you could feel the difference in the first cruise

But sometimes it is best to leave well enough alone as swapping can always introduce problems.
I tried to attach the owners manual PDF but it is too large.
Go to this link and type in AQ225 for engine type, it should bring up a list of downloadable manuals for you...:
Publication search - Publication Search : Volvo Penta
Download it and you will see that the AQ225 manual covers the AQ260 as well.
Got pics? I boat vicariously

plus I am a little bit nosy....