Mustang Newby 1966 Coupe Project

unless you are planning to reengineer the car, forget newer generation parts. you can use the 8.8 rear end, but you are going to have to narrow it, and get rid of the rear suspension mounting points and change them over to leaf spring mounts. not a hard job, but one that requires precision.

a modern engine and transmission can be used, but not any of the ohc engines as they are far too wide for the 66 engine bay, so you are limited to the older small block ford engines(289/302/5.0/351w).

and unless you are well versed in modern electronics, you are also limited to non electronic transmissions as well.

my advice is think about building the six instead. the 200 can be built to make decent power, and turn in fuel economy close to 30mpg as well. and with a T5 and 3.55 gears, will surprise many V8 mustangs.

the nice thing is you dont have to change spindles, and disc brakes are available in four lug patterns, including four wheel disc brakes.

the 8" rear end will handle 400hp with a little beefing up. currie enterprises has gotten into building 8" rear ends in addition to their 9" line up. i would sya however, do not run slicks with the 8" on a regular basis, or you will tear it up, even with beefing up from currie.

since you are going to go with the V8 swap and five lug wheels, i suggest you try to find a set of spindles from a 1970 mustang. they are larger than the 65-69 V8 spindles, which are larger than the 65-66 six cylinder spindles.