Looks like I will be installing a 289 after all - the 351 was toasted. Just makes the car more original if I go back to a 289 as I also have the numbers matching C4 transmission, so the FMX will be sold off. The '67 interior is also getting swapped out to go back to the original Ivy Gold '68 interior.
The C4 transmission has now been rebuilt with a shift kit and 2800 stall torque converter. I have also bought a '68 dated 289 with an original Ford high rise aluminum intake manifold, standard 302 solid steel crankshaft, forged pistons, 351 heads and 4 barrel holley.
So, after having had the 289 apart - we had a few issues to resolve. Bearing caps were installed backwards, guide plates had worn the rods. After getting this repaired, I have a sweet 289 - its now painted, decked out with Shelby aluminum valve covers and the 7 Quart Cobra oil pan.
Front suspension rebuilt - September 2009
Rear differential rebuilt - October 2009. Installed a 3.40 ratio posi-trac. Drive train now completed including drive shaft balanced to original spec.
February 2010 : The car is finally in the body shop! Floors have been cut out for replacement.
April 2010 : Front end restoration completed. Frame rails, torque boxes, rad support and fender aprons have been replaced. Shock towers fixed where holes were blown in for access to grease nipples.
October 2010 : Rear end restoration completed. Frame rails, torque boxes, outer rockers, quarters, wheel tubs, trunk floor, B pillars and door skins replaced. Floors and toe boards also replaced.
November 2010 : Car put onto rotisserie and underside welding completed, including all brackets and seat risers. Underside sprayed with epoxy primer and drip check sealer applied to all joints
February 2011 : Gapping of the vehicle completed - doors, trunklid, hood etc. Drip check sealer and first coat of red oxide primer applied to interior
March 2011 : First coat of epoxy primer applied. Final coat of red oxide primer - interior completed.