My 261 has the higher compression 848 head, hydraulic lifters and R10 overdrive. Its like Bill said. It will do 80 all day. I like the setup so well, I am keeping it during the frame up resto. Looks stock, has a bit more horsepower, and its all a bolt in situation. No need to break out the welder for anything.
I like the normal newer style driveline, so I got myself a 55 1st series rear end, I think the ratio is 3.90 (its stock so correct me if I am wrong) and the driveshaft out of a 62 suburban. Open driveline just felt better to me. Its a preference thing. My 261 is a 1958 model and I had to order the hydraulic cam, lifters and rods special from my engine shop but they didn't have any problems accommodating.
