I haven't even finished the teardown for my '66 Dart's motor, and I've already found some bad signs:
This doesn't look like keeping the stock block is a good idea. So - I might as well weigh all of my options at this point. Goals are a street / strip build, probably around a $2000 or less budget.
1. A slant six set on kill.
Based on some other dyno reports, this motor may have been putting close to double the stock horsepower to the wheels when it developed rod knock, even though it was internally untouched and only on 5 psi of boost. Getting another slant six, doing a bit of internal work, and turning the boost up would make it pretty easy to go for triple the stock horsepower, or more.
Pros: There's the wow factor of a built slant six, the combination of the expected engine with totally unexpected power. The car is already set up for this engine, and the transmission in there is unique to the slant six so anything else would require both more fabrication and a transmission swap.
Cons: Triple the stock horsepower isn't as much horsepower as some other options would have. And good cores are getting rarer.
2. A basic small block Mopar.
Take a mid '90s truck 360, add a performance cam and replace the "beer barrel" intake manifold with something better, and find a suitable transmission, and this should be in the 350-400 hp range.
Pro: An easily documented swap with good power potential.
Cons: Suitable intake manifolds aren't cheap, and the stock EFI manifold won't clear the hood.
3. A Gen III Hemi.
Pros: Newer engine that may offer
Cons: Expensive. Probably not in the budget unless I score one cheap at Pull-A-Part.
4. Chrysler 2.4 Turbo.
Bit of a dark-horse choice, but I've seen them in RWD swaps before to good effect.
5. Something crazy.
If an apparently-working BMW S52, Mercedes V12, or something equally nuts turns up at basement bargain prices, all bets are off.
Not in the running:
LSx motors - I'm pretty sure I can get similar power out of a small block Mopar for less money and hassle.
Big block Mopar - getting tough to find and a tight fit in an early A body.
I am strongly leaning toward the slant six set on kill, but feel free to make the case for other options.