Hi Chris,
You'll get lots of opinions on this one....
First, even though the factory said the engine is 10.75:1 it probably isn't. The only way to know for sure is to measure everything. You can sometimes approximate by measuring "cranking pressure" but that's heavily influenced by the camshaft's timing of valve open/close events, so not all that reliable.
The lead additive in fuel used to be there to do two things: raise the octane rating (knock resistance) and to lubricate the exhaust valve seats.
Detonation (knock) is influenced by lots of things - fuel octane rating, actual cylinder compression (pressure), temperature, combustion chamber condition and shape, turbulence, spark timing, even the material the heads are made out of (iron or aluminum).
It's a paradox: heat and pressure in the cylinder are your friends when it comes to making power, but they are your enemies when it comes to detonation. As to which grade of fuel to use, the "correct" answer is to use the "minimum" grade of fuel requred to keep your engine from going into detonation under any of the conditions/situations you drive it. Anything "more" than that is wasted money. However, considering the consequences of not having "enough" octane vs. the consequences of having "too much" octane, I believe I'd prefer to err on the side of "too much". I've been told there is such a thing as "silent detonation" - detonation that you can't hear. One of the ways to detect it is to check for tiny flecks of shiny metal on your spark plugs. Those flecks are pieces of melted aluminum from the pistion - a sure sign that the cylinder has experienced detonation.
The other fuel issue is exhaust valve seat lubrication. There are two camps on this. One says that not having lead in fuel is always a bad thing and it will eventually cause the valve seats to get hammered into the head. The other says that this is possible, but won't always happen - it depends on how the engine is used. If it's frequently used in a high load, high temperature situation (pulling a heavy trailer) then it's likely to happen, but otherwise won't be. Note these concerns only apply to engines from the pre-unleaded fuel days. When the switch to unleaded fuel happened, manufacturers began using processes to harden the exhaust valve seats to avoid the problem.
Personally, the second view is the one that sounds right to me.
(I hope so, because I'm going to be running a set of very rare cast iron heads without hardened seats on my engine).
If it were me with your car, I'd probably run the best fuel I could get. If fuel cost is a concern, then I'd cautiously "work my way down" in quality paying close attention to what I could hear from the engine and also frequently examining all the spark plugs for any signs of detonation.
Bear