Well, I guess its official...I'm a little girl. I have but a lowly '57 235 in the '51. Maybe someday when I grow up...LOL
I don't know about the 261's, but the 235's 848 head is the most common. It ran in production from '56 thru '62. As was stated, it has a smaller combustion chamber for a higher compression ratio. The cast iron also had a higher nickel content to reduce warpage/cracking than the older castings.
Now, correct me if I'm wrong, but somewhere I read the horsepower ratings for the 235 and the 261. It seems to me that the 235 was rated at 140 horse, and the 261 was rated at 145. Does that sound right?