Manual
tranny and/or turbo 2.3 swap are going to be your best "Bang-for-buck" $1200 spends on any 2.3 car... granted, you've got to find the parts for $1200, but that's not hard to do nowadays, 2.3turbo engines are cheap in the yards (There is one near me that would only cost about $400 total to have all the parts to drop it into my car... I just think I'm going to go ahead and do a V8 swap myself because it's what I've always planned for this car.)
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1976 Ford Mustang II Ghia: 302 with a 600cfm Edelbrock carb, Edelbrock Performer 289 intake, Dynomax Blackjack headers, 2.5" exhaust with Flowmaster Super 44s. RJS 11-gallon fuel cell, C4
tranny, chrome 16" pony wheels, fuzzy dice, brown vinyl half-top, and painted in the tackiest color ever (harvest gold, that's why I call it "The Goldenrod").
Also have a 2003 Dodge Ram (lightly modded daily driver/tow rig/office/dining room/home away from home/workshop... I call it "The Big Blue Dawg".)