Ummm... It's not good. I've not had the best luck the last 6 months. Thought it was just the bent fan giving me the vibration but the motor is hurt. My buddy threw a new clutch fan/fan he had on it. I think I have the same thing going on as @TOOLOW91 old motor. Still have ok oil pressure(but it's lower than it was) it's at 58-60# on cold start. It was always at 75# before. Has a pretty good vibration at idle and a little bit of ticking/clicking noise. I'm pretty sure it's a bearing and the crank may be walking slightly.
So I am at a crossroads on what I need/want to do. Obviously the motor/trans has to come out of the car. Both are hurt. Do I even bother with this 302? I could possibly get away with throwing some bearings back in and following through with initial idea. Or....just go ahead and place my order with Woody at FordStrokers.com for the 363 shortblock. All the h/c/i-exhaust parts can be switched over(even if they are on the small side). I could sell the unused leftovers and scrap the 302/T5.
I'm leaning towards throwing this thing in the garage and letting it be a jackstand Queen for awhile. I think I'm going to go more towards a restomoded idea with a good bump in power but not solely concentrated on 1/4 mile. I think it is a waste of money to play with the 302 idea anymore but do I want to invest 20k and 1-2 years? I'm going to step away for a few days and decide what's next.
I don't know what you bank account looks like for having a "fun" car and I don't know what your end goal is for the car but I do know that 1-2 years on jack stands and about $20k is never the end of it. Once you invest the big bucks into the big power you'll need more money to keep it going and replacing broken parts.
Ask yourself this, what's wrong with a stout refreshed 302 cid with a turbo/blower pushing 450+rwhp on that light weight car? It can be done reliably with a solid engine management system and a good tune. You will never be the fastest car on the street, there are too many other people that have more time and more money than you and I.
I'm only speaking based on how I feel with my own experience so far with my car and watching other progress/build threads. Seeing my car out of the garage today while following it to the performance shop I was getting giddy about getting to hopefully drive it soon. Sad to say but the 17 miles it traveled today was the most action it's seen in a long time. Building/restoring a car is fun but it's more fun driving the damn b!tch.
My official $.02. Buy some bearings (assuming that's the problem), a used T5 and enjoy your car while building this 363 over the next couple years if that's the engine you really want. It won't cost that much to get your car back on the road if you do the work yourself.