Sorry to hear about the engine. You were probably following most of these rules, but for those who want to run stock blocks near the edge, it is IMPERATIVE to keep it out of detonation.
Never run the nitrous unless the engine is at a cool temperature. Hot engines are far more likely to detonate.
Retard the timing 2-3 degrees for every 50hp of nitrous boost.
Use cold spark plugs when on the bottle. Racing plugs are recommended.
Use straight race gas! Street pump fuel, or even a mixture with race gas can lead to detonation.
Do NOT allow the engine to run lean. Check the plugs, and if the the timing is pulled back plenty, there should be no specs on the plugs. If there are, it's aluminum from the pistons. When starting out with a nitrous tune.... Start with plenty of timing pulled out and the nitrous fuel enrichment on the rich side. Tune it down to where the nitrous response is crisp, but no specs. (do an advanced search under my username for 'nitrous tuning', and you'll find the whole article on nitrous tuning)
Well, what now Cahorne? Are you stepping up to a Dart block, or going the 351W route?
Good Luck!