The 302 is the engine of choice as it will bolt in with the least amount of work. Mustang engine mounts and any small block transmission will work behind the 302 with the appropriate flexplate, bellhousing and starter. Manual transmissions included. If you go bigger on the engine you will have to modify the towers for clearance as this car is based on the early Falcon platform. You can shoehorn in a 351W or Cleveland however, the shock tower clearance is tight and headers are a must and kinda expensive. If you use the 302 early Mustang headers or manifolds will fit and clear everything. Approach it as an early Mustang or Falcon with a small V-8 and you'll have no troubles, it will all bolt together with little effort.
Front end is the same story, early Mustang V-8 parts fit and you can even use disc brakes however, don't neglect the rear end and brakes as well. The 6 cyl. rear end will do all right for a while behind the 302 but eventually you'll hook up that V-8 and blow the spiders out of the case. Oh yeah, the rear brakes for the 6 will get more than a workout; change them to the V-8 drums or better yet, discs. Happy wrenchin', nice looking car!!
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