I can't answer your 261/700R4 questions, but i would encourage you to keep looking for a T-5. There have been a few for sale here, as well as on the HAMB, Craigslist, Ebay etc... I don't know if US junkyards will ship to Canada, but I found mine on car-part.com for $300 + shipping.
I absolutely love my T5 behind a hopped up 235 in a '46 PU!
Last edited by X-Farmboy; 03/13/2015 11:57 PM.