Doing the 235 swap myself right now. If you can find a 261 that will provide ya more ponies as stated. Patricks has a good article on the swap in their catalogue, http://www.patricksantiquecars.com/
call them and request it. Also found Patrick to be helpful info. wise and very good with his prices on the engine rebuild kits.

BTW, saw a 235 for sale in Canada in the swapmeet section, not sure how close you are though?

Hank

1951 restoration on website
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http://www.hanklong.com