err no, at those HP levels the Gen II head actually flows better than the Gen III. The Gen III head has smaller ports as Toyota ditch the TVIS system and needed to maintain low to mid rpm air flow speed for efficient cyl filling. Once you start running big flow numbers the Gen III head is a bit restrictive when compared to the Gen II head...still would do the job easily though.
Depending on cams the shim over bucket in the Gen II could be problem but for 500hp huge cams aren't required, 272's would do the job nicely and still keep the thing fairly streetable and you can run these shim over bucket no probs.
All the GT4's i know running 500+ hp are Gen II, the MR2T's are a mix of Gen II and IIIs.