I'm not sure why I would keep the 260 in storage. Its not the first time I've heard this. I will find a use for it. I have a 65 f100 it might be good for. I have a 55 Fairlane it might be good for. Whatever I do with it, I am certain it won't be getting stored to keep with the car.
As far as cam, I figured I'd use a 5.0 HO cam, nothing crazy. Efi is likely to be a holly terminator X system, multiport efi. Sniper is an option, have a friend with a sniper on his classic bronco and he's really happy with it.
I haven't talked to anyone about adapters. Seen some online for $7-800ish if I remember correctly. If the 260 was on a fresh rebuild I'd put more effort into keeping it, but to rebuild it and adapt it makes no sense to me. This late model 5.0 stock is a good power boost, and with HO cam and holly Efi ,it will be a huge upgrade. I'm not looking for high performance per say.
Maybe you guys think this car was running and driving when I got it? I guess I should fill you in. I bought it out of a garage, sitting on jackstands, transmission on the floor, interior gutted, 1 new floor pan welded in, 1 floor pan included to repair other side. A pile of parts included. New and old. It has good bones, its original but apart. Someone did an interior swap years ago, it came new blue and white, but I got all black stuff with it. Exterior is partially primer. New fenders. Old ones are all dented up. I have them but they aren't worth repairing, I wanted the badges off them.
It needs a full restore. Everything is apart, not by my doing. I'm putting it back together with modern touches so it feels like a newer car than it is. I don't want to deal with a carb, or manual steering, etc. It will have front disc brakes , maybe rear disc? I'm going to look into rebuild and regear of the original axle, I maybe just go with it. I have an explorer axle for another project to measure off, and the other project has a 9" narrow axle , but not sure its narrow enough for this mustang. I'm considering all options and advice.
Its not getting built for a car show, or for resale, its just getting built to drive. It's going to appear pretty stock inside and out. Under the hood will be more modern. Steering and brakes upgraded, and possibly some suspension upgrades. But want it to look pretty stock. Any v8 in this little car will be fast, the low power 260 probably feels like a race engine in it. An Efi 5.0 will make it feel like a rocket even if all it has is 225 hp.
One way or another, it will be a fun ride!