I actually thought about this swap at one point, as I had a nice 400ci Chevy small block sitting in my rusted and wrecked (at that point wrecked to the point of being unsafe to drive) 1975 Chevy pickup that was backed by a less than a year old TH350
tranny. I also had a 1974 Mustang II coupe that had a 2.3 that was burning oil.
Long story short, I decided I didn't want to run a motor plate, sledgehammer the tunnel to clear the TH350, and then have to track down a set of "Ram's Horn" manifolds for the 400, not to mention have to do some substantial wiring and have a driveshaft fabricated.
Short story long, I fixed the Chevy pickup up slowly but surely (still a long way to go to being right, but it's drivable) and kept it, bought a '76 Mustang II that already had a 302 in it, and sold the '74.
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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".)