We have a 351-W in our 1978 Mustang II, and it fits. Barely...lol! I have mounted it in there two ways (easier and harder!). The original mount was to use two 302 drivers side (if I remember correctly) motor mounts for the Mustang II. The mounts on the 302 are mirror images of each other, and with the passenger side 351-W bolt holes for the mount being two inches further rearward than a 302, this lines the engine up where the 302 would sit. You can get a cheap set of 302 headers to fit, at least I was able to do it! I can't remember the brand though, because...
The harder method of mounting the engine came up! I had the car stripped to the shell during the last 'revision', and I decided to go with headers that were specific to a 351-W in the Mustang II. My options were Hooker and Hedman. Hooker says that their headers require cutting out the inner fenderwells to use. Headman stay within the frame rails, but require the use of an engine plate. I opted for the Hedman set (not cheap at over $600.00 for the plate and headers), and I went to work welding in the plate mounts, positioning the engine and I even ended up building a custom
tranny mount to allow the 2 1/2 inch stainless pipes to tuck up under it. It still sits low though...lol
The Headman headers have a 3/8 inch full flange, and a side by side slip-on collector (flat). I cut the tubes from the flange so each tube can be positioned and bolted in, and I sent them out to Airborne Coatings for metal/ceramic coating. The reason for the changes was I moved to the coast, and I was tired of the exhaust system rotting out (headers too), so I went with the coated headers, 304 stainless pipes and 304 stainless Edelbrock mufflers.
I have a Edelbrock Performer RPM on it, and a Carter ThermoQuad w/ 1 inch spacer/adapter (blended into the manifold for smooth flow), which necessitated cutting a hole on the hood. I put an Edelbrock Pro Flo air cleaner on it, and cut the hole to fit it (rounded, triangular shape) and put black trimlock around it. Looks nice, but I am now considering a (sacrilege!) cowl induction style hood.
A 351-W will fit, and I can tell you that the torque is nice!
Here is a shot of it when I used the 302 mounts:
http://slackersforum.servebeer.com/p.../Mustang17.jpg