Whats wrong with a hydramatic tranny? That should be a much easier conversion. I have a 700R4 in my Nova, but its hooked up to around 425hp. The 700R4 might be an overkill for the 261. Not sure the 261 has enough power to make the 700R4 work properly. This is only a guess on my part and I could be completely wrong. I'm not familiar with the 261. Cecil.....