Done my '61 261 a few years ago in the following manner. Dissembled the entire engine, labeled all parts and surgically cleaned each. Visually checked for abnormalities miked for wear and compared with wear specs in o/h manuals. Made a spreadsheet listing necessary and nice to have replacement parts on the left edge and vendor names and quotes along the top edge. Surprisingly I found that kits were the most expensive way to go and Car Quest had best prices for most pieces.
