Hi toolman . . . cool project. I like the idea. And indeed the 292 is almost two inches taller then a 250 . . . so I can relate to your concerns about clearances under the hood. But neither of these power plants are native to a '57. So you face specific fabrication work just to mount the engine/trans and perhaps rework of the steering gear. Seems the finished height of the intake manifold is pretty much in your hands:
TriFive Posting circa '12
regards,
stock49