The 292 would be a super engine to go with, bolts up to modern gm tranys (same as V8) and bellhousings, has tons of torque, lots of accessory manifolds. I've been thinking about building one for my 53. And there is a great book on building these, "Chevrolet Inline Six-Cyliner, Power Manuel" by Leo Santucci. Also Check out Langdon's Stovebolt website for more info and
www.inliners.org