A lincoln Versi rearend will fit in the back, that is a 9 in rear and comes with discs, but is very expensive, other than that there are no other rear ends that come with disc, I would suggest finding a 65 or 66 9 in, from a junk yard and buying a disk kit, the fronts are a little easier, I bought the California Mustang disk rebuild kit, cause it came with new spindles which is what you will need for the change. It isn't suspension that you will have to change, it is the steering, that is why you need the new spindles. you will need to run V8 steering. I don't know about what size tires you can sqeeze in. but as for engines, the 302 and 289 are really basically the same in performance, you just have more cubes in one. I would take the 302, cause of all the stuff that is out there for them, more specifically strokers and what not.
good luck on your project I am about to finish mine, did the same thing, 6-8 conv, except I am throwing in a new svo 351.
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