The point in using the 292 housing isn't to modify it to install the transmission at an angle. It doesn't need to be installed at an angle. It doesn't care.
When you install it straight up, then the transmission mount needs to be made differently, and you will need to bend the shifter, or use one from something else, like an S10 T5.
The "drilling out" refers to running a 1/2" drill bit through the transmission bolt holes because the trans. is metric, and the bellhousing is English. It's not about changing the bolt pattern...
