The few rides I have on a RH impressed me with the motor, I believed it was close to mid 80's power and out put.
Would others think the 77 RM motor is better?
I think you are spot on. First time I rode a 74 RH was 76 and I had an RM250A at the time. The RH engine was so much better that I wanted to swap it out at the time. The droopy TM slippery footpegs were rather distracting on the RH, but that engine was something else.
Recently, I have ridden fresh 74 and 75 RH's. The engines were pretty much identical and apart from the softer rear end on the 75, they handled very similar. Power and power type still leaves my RM250B for dead, and my B is not exactly slow.
Getting an up pipe built to match the original RH may be a little challenge.....
Good luck with the project and hope to see it out at some of the club events.