You may want to consider a 230 or 250 six because the 700R4 is a straight bolt up to them. The 235 will require an adaptor kit which is a bit pricey. With the overdrive (700R4) trans the rear gear can be either the 4.11 or 3.90 since the final in OD is 2.88 for the 4.11 and 2.73 for the 3.90. Go much shallower in rear gearing and the six doesn't want to pull any kind of load, climb hills, or even buck a strong head wind very well. If you are never going to haul or pull anything you may want to use a non-overdrive 350 trans with a 2.73 rear rear. With the torque mutiplication of the automatic they pull that gear just fine and you get the benefit of reduced engine revs in every gear rather than just when in OD.
How hard will it be to put in the 230 or 250 six? Can someone point me to some information on this swap?