I just bought a 1968 Mustang coupe the other day and im the 3rd owner!!!! I payed 1700.00 for it and got a good c4 trans, a 460 block, new N.O.S. mirrors and a new dash pad. The only rot i can find on it without stripping it is the floor pans, battery tray and the back lower quarter panels, im sure theres more than that but thats all that can be seen. It was a strait 6 then the orignal owner swapped in a 351 windsor, now its empty and im not sure what i want to put in it. First thing i want to do is get it driving then start the body work this summer. Im wanting to make it a clone of a 1968 GT/CS aka the California Special.
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1968 Mustang Coupe
1995 Lincoln Mark 8
1998 Firebird
This is my friends 390 powered GT/CS. It's awesome - probably a 95 point car. Another friend has a 351W in his GT/CS.
Since you already have a C4, I'd look around for a '68 289 or 302 for the car. You'd need a bigger transmission to use the 460. Small block engines are easier to work on in the small engine bays Mustangs have.
That's my 2 cents.
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I contend, that for a nation to try to tax itself, into prosperity, is like a man standing in a bucket and trying to lift himself up by the handle.
—Winston Churchill
It doesn't look like the previous owner changed out any of the I6 suspension or steering (4lug wheels), you should start collecting V8 spindles, 8" or 9" rear, new tie rods, centrerlink, etc. The I6 stuff is pretty light weight for a V8 motor, that's why Ford used heavier parts on the V8. You rim selection will be pretty slim with 4 lugs also. You may have already realized this but some don't know the suspension, etc. is different.
Nice find and glad to see it's going to be rescued and turned into a nicer car.
Jon
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'67 Coupe 289 C4, Candyapple red w/red deluxe int., PS, ext. decor group, light group, foxbody seats.
Next to install> stroked 333, AOD, 9" w/3.50:1, PDB.
'09 Black Warriors In Pink with glass roof - the wifes Mustang.
"If it ain't broke, I haven't fixed it yet" -Jon
None of the existing suspention will ever be used again, its just there now to keep the car a roller while its at the storage yard. If i have the cash id like to have a Mustang II front suspention with power steering and a Ford 9" in the back. That just depends on what the cost will be to convert it, i havent really had the time to compare prices on parts since all the catalogs i have are 2-3 years old.
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1968 Mustang Coupe
1995 Lincoln Mark 8
1998 Firebird
I was able to start gutting out the interior today. So far ive got most of the dash stuff tore out, the wiring is pretty spliced so its all going in the trash. I found more rust but i expected that, looks like im going to need some cowl repair. It doesnt look bad from under the dash but without removing the upper cowl panel who knows what its like. I also forund some rot in the trunk down by the bottom of the quarters. Im going back out to work on it now since it quit raining and ill get some pics.
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1968 Mustang Coupe
1995 Lincoln Mark 8
1998 Firebird
I'll bet you lay awake at night thinking about all the stuff you want to do to it.
Bag and lable everyhting as you take it apart. Its a pain but you will be glad you did. Dont be afraid to take some photos of some of the disassembly.
And above all, make a plan as to what you want to do and how you want to do it. Take your time, do the important things first (frame structure, sheet metal, suspension/brakes, drive train). all the fancy stuff can come later.
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'66 Ragtop, vibrant red, 289-4V, 4-speed toploader
'68 Fastback, space blue metalic, 351C-4-V, 4-speed toploader
This is my friends 390 powered GT/CS. It's awesome - probably a 95 point car. Another friend has a 351W in his GT/CS.
Since you already have a C4, I'd look around for a '68 289 or 302 for the car. You'd need a bigger transmission to use the 460. Small block engines are easier to work on in the small engine bays Mustangs have.
That's my 2 cents.
why would your buddy get a california special with the incorrect engine in it? like a 351W?
Bagging everything as you go is the best way for certain. Old tupperware bins work great as well. Depending on how into you are it is a good idea to make a running list as you go of the parts you plan on reuising and the ones that you want to or need to replace. Photos are truly a great resource as you go because a year later you could be totally lost when reassembling. I like tot ake pictures before I reomove components as well as during and lay out all parts that go together and photo them as a group showing the configure they go back in. Just save em to disc with a cheap digital camera and no cost involved either. Looks just like my car as well and want to do the CS clone also or some midpoint look. Good luck!
Thats really good advise, but 99% of the old stuff is not going to be reused + this being a I6 car really the only thing being reused is the body and panels.
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1968 Mustang Coupe
1995 Lincoln Mark 8
1998 Firebird
If you go with a small block and the C4 you could still use the 6 cylinder drive shaft, that is as long as you aren't pumping out over 300hp. I have almost the exact same car and I'm in the middle of the 6 to 8 swap. Let me know if you have any questions. Heres a few pics of mine.
My new Mustang a 1968 Mustang coupe. 
Nice find keep us posted on your project...
