If the 292 will fit hoodwise, I'd go with that. Although I had a 62 biscayne with a stock 230 and a 3-on-the-tree and honestly it was just fine.
I am not opposed to dropping the motor as low as it would go to make a 292 clear. I don't care to fab mounts, cross members or whatever it takes to get the taller motor in. Heck, motor plates would be cool!
I don't know the physical size differences between the two, nor the power/torque differences. I figured I'd get info like that with this thread.