My buddies uncle works for a transmission shop. I brought this same question to him (He has rebuilt 1 T5 for me and a AODE). He said it could be done but if you put any power through that transmission it would ruin it very quick. He said it really isn't worth the hassel of converting it over to work with a 302. I never did go through with it. I ended up finding a T-5 and had that rebuilt from a guy. But from what he said, the shaft I Know for sure was to long I think. And that was one of the things he would have to fix in order to get it to fit. Not sure about what else.
If you do go for it, let me know how it goes. I can get 4cyl T-5s all over the place. If its cheap to rig up and it handles power nicely, then might be the way to go. But I heard from a few people about it breaking very easily with just a stock 302's power.
-- Kevin P
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kevin@techsi.net