i realize this thread is about putting a 302 in a 240; however, i must throw in my two cents.... have you considered finding a cheap 4 Cyl mustang notch back and dropping a 5.0 in it? gut out the body for weight issues, you get MEGA torque, and you still pay for 4cly insurance, best of all... the motor drops right in, thus saving you a lot of cash. rear end swaps should be fairly simple as well, you could put in 3.55 or 3.73’s ... or if you want the easiest route, but a 5.0 and gut it. trick out the motor, and enjoy.
edit: some reading you might like on weight reduction of the stang
http://www.corral.net/forums/showthr...ghlight=weight