Is it even possible to make good power with a 200 6 without spending loads of money? At the end of the day it's still a 200 6. For what it's worth I'd keep it all stock. Just give it a good tune up and enjoy it. If you want it to have more power then start putting together a plan to pull that old 6 out and replace it with a V8. Any V8, but I'm partial to the 289 in a vintage mustang like yours.
yes there are a number of things that can be done on a budget to get more power from the inline six. swapping a 250 and building that is one thing you can do. select a good cam for the engine based on what you want from the engine. clay smith cams are available from vintageinlines.com, and of course comp cams has a few good ones also. clay smith will even custom grind cams at little to no extra cost. so if there is a grind you like, let them know and they can grind it for you.
going to two, two barrel carbs will also help in getting airflow into the engine. add in bigger valves, is 1.75in/1.50ex will increase airflow through the engine, and porting the exhaust and pocket porting the intake will also help. at this point you should have enough airflow through the engine that header(s) will help as well as dual exhaust, i would do 2 1/4 at most.
forced induction, specifically turbocharging, does wonders on these engine.
also dont forget to mill the head to boost the compression. for a normally aspirated engine you want 9.5:1 up to around 10.5:1 for the street. with forced induction 9:1 is about as high as you want to go and limit your boost to around 6-8psi.
There are plenty of things you can do to an I6 to make more power.
@rbohm will be able to tell you more than a few. The things I would do with an I6 are very far from stock and would completely defeat the purpose of keeping a stock low mileage engine. Generally the mild I6 guys will throw on a header, electronic ignition, and a rebuilt carb and call it a day(you don't need to change the carb, just rebuild the one you have).
For wild things you can do:
1. swap the head to the aluminum head that Classic Inlines makes....its expensive, but makes a good chunk of power(defeats the purpose in keeping it stock)
one change here, classicinlines is no more. vintageinlines now sells the heads. he is still growing the business so he does them in batches when he gets enough deposits to make a run. i think he makes runs of 100 heads at a time.
2. swap to a different engine...either a v8 or a later Ford I6 from Australia with DOHC and 24v(again, defeats the purpose of keeping it stock)
three heads to look for;
the aussie 250 2v head. the aluminum head was modeled after this head, with some improvements.
the aussie crossflow head, as noted requires some head and block modifications out lined in classicinlines.com tech section, the only part of that site that is still available. you can link to it from vintageinlines.com.
the argentine 188sp head. these are harder to find at least in this country, and they require a different intake than the aussie 250 2v and the aluminum head do so get that with the head otherwise you make your own.
if you can find them, and can afford them, the aussie BARA engine is starting to be imported into this country, and that is one heck of a motor as it has dohc head.
3. Boost the engine, either with a supercharger, or more efficient turbocharger.....you can do this to an otherwise stock engine and make 200+ HP fairly easily...but there are of course downsides and considerations in designing a turbo system(especially one for a carbuerated application)...this is also expensive and neither this or option 1 will be much cheaper than a v8 swap.
a turbo system is easy enough to install, picking the right turbo for your combination is harder to do, but any turbo company will help in picking out a proper turbo for you. at that point it is a matter of matching a cam, and setting up the head to use the turbo.
5. Swap transmissions to a T5 manual trans...this makes the car both more effecient at cruise speeds, and makes the car feel snappier under acceleration...it also allows you to retain your stock low mileage engine.
a T5 is an easy swap since there are kits for this swap. and does really help. you get two extra gears, a lower first gear and an overdrive. pick wisely though as if you get the four cylinder trans you get too much first gear making it virtually useless. the V8 trans is better imo.
6. Just like v8s, changing the gears in the rear end will also make the car accelerate faster(at the cost of higher cruiser RPM...which would be mitigated if combined with a T5). It may be hard to find 3.73 gears for a 7", but I am sure they are out there somewhere.
again be careful picking a rear gear to run, make sure it works well wit your trans pick and the first gear you plan on running.
One day I will build a I6 Mustang.....but my plan is to use a Jaguar DOHC all aluminum I6 and slap 3 Weber sidedrafts on it(not the most reliable engine choice perhaps, but DOHC all aluminum inline 6 engines that still use a distributor are few and far between)
good combination, i have thought of a number of engines to use, the jag inline six, the bmw inline, the nissan inline six and the supra inline six, as well as a few of the volvo inline sixes. i would most likely use EFI on these engines though for better reliability and fuel economy.