I would definatly go with a 351W based motor, I put one in my 89 LX this summer and couldn't be happier. First with a 351W you can get more cubes than you could safely or financialy extract from a 302. Second only minor modifications are needed at most, headers, oil pan (which can be sourced from older Crown Vics) intake (Trick Flows 351W R) is one of the nicest i've seen, I've got one) Flywheel (FMS makes one) to make it work with your factory T-5.
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89' LX- 351W .030" AFR 185cc, Crane roller cam, TFS 351W intake, roller rockers, 30# injectors, 75mm TB & MA, BBK longtubes, 190lph pump, 3.55s and everything else in a parts catolog!
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