I know of at least two 261's within 200 miles of you- - - -one of them in my shop waiting to be rebuilt, and another near Jackson Tennessee. They're not terribly hard to find, so don't get robbed by someone who demands a ridiculous price for one. Drop me a PM and I'll try to help you locate a good one to build up. The 261 engine/3.55 rear end combination will be a good choice, but if you're willing to convert to an open driveline instead of the current torque tube there might be several other options available to you.
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. - Ernest Hemingway
Love your enemies and drive 'em nuts!