I'v rebuilt a couple of 261's in the last few years and installed then into old Stovebolt trucks.Although the fan position is lower on 55 and up blocks, both my trucks use a stock belt driven fan on a shortened water pump.If you get lucky you may find a 54 block with higher water pump just like the 216 or you can buy an adapter to use the early pump on the later block.You can get engine rebuilt kits from many vendors, but I find it best to buy the parts from your machine shop if you are actually going to recondition the engine and not just throw in new rings on worn bores.Any bolt on speed parts for a 235 will work on a 261 of the same year, intake and exhaust systems, cams.The stock drivetrain in your sedan will work fine, if you want an upgrade for improved Hiway performance, search around this site, the combinations are endless.