to place a 292 in your truck is some bit of work
but worth it, ......my.02
it can use any modern chevy bellhousing L6 or V8 and any modern transmission available today, auto or manual type. BUY Leo Santucci's book http://www.amazon.com/gp/product/1931128154/103-7727486-1671829?v=glance&n=283155 http://www.customdesignperformance.com/leo/leo.html
you will have to weld in two new 'offset' motor mounts. I got them from buffalo steve, I used biscuit type mounts to the engine... they look like these @ sachse, http://www.sachserodshop.com/pdf/5.pdf
but steve will supply them. Contact Buffalo Steve, Inliner advertiser, You can call Steve at Buffalo Enterprises - phone number: (360).652.7684. he has NO web site!! and may not answer the phone cause he's in the shop.

http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=010698#000005

I installed a T5 so the tranny mount is my third mount.
you may (maybe not as I'm not sure of your 60-66 type engine compartment) have an issue w/ the radiator fan and have to install a puller (better choice) or a pusher fan, all depending on how far back and type tranny you use. I mounted mine as high up and as far back as possible. i have a three groove belt H~damper pully on my 292, it came out of a junk yard w/ 200 miles on it at $600.00
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=011805#000000
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=010192#000003
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=011425#000005
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=011567#000000
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=011636#000001
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=011442#000000
http://www.stovebolt.com/bboard/cgi-bin//ultimatebb.cgi?ubb=get_topic;f=2;t=010004#000000
http://www.stoveboltengineco.com/howto/engineswaps.htm

BUT

While still a six, the 292 is from a completely different family than a 235 (if that is what you have). the 250 has different mounts.

The 261 is from the same family of motors and externally the same as the 235 and an easy swap.

A GMC motor such as a 270 or 302 will bolt to your bellhousing and will look very similar to the 235 but is different in a number of significant ways. The front motors mounts, and the intake and exhaust manifolds from a 235 will NOT work with a GMC motor.

The 292 has a signficantly different valve cover than your 235, but the 292 was available starting in '63 and to the uninitiated would probably look dead stock in your truck. It requires a change in bellhousing from what you have, the same as a V-8 swap would.

Should be a good swap whichever way you decide to go. the engine would be a bolt in swap. The only difference between the 235 and the 261 is the increased bore, virtually everything else is the same other than full flow oil filtration and a bypass heating/cooling system. Without the numbers, the blocks look identical - you can use your 235 oil pan, valve cover, side cover, radiator, water pump, thermostat housing, intake and exhaust manifolds, distributor etc... They even say that an 848 head from a 235 is the preferred head.
Last but not least, I can burn the rubber off my tires easy with the 235/sm420/3:90 in 2nd gear. At least I can at sea level. The 2 second difference from 0 - 60 wouldn't be enough to convince me to switch to a 350. Unless you want to tow heavy loads and/or/while maintaining freeway speed on the steep hills and you do that often, what would be the point?


Gooday
Caroline & Jim
& Lucinda our 3104
51-3100 inliner @ 4655
small wheel moves by fire and rod,
big wheel moves by the grace of god,
every time that wheel turns round,
bound to cover just a little more ground.