I've never heard of a 2.6 engine. Do you mean a 2.8 L? If so, that would be a really poor choice. It's just barely got enough power to pull an S-10 around, and the early ones with a carburetor had all sorts of fuel system troubles and main bearing issues. If you used a 700R4 trans behind it, the extra-low 1st. gear would help get something the size of a stovebolt moving, but I'm pretty sure performance and fuel mileage would really suck!
Jerry