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Originally Posted by Pain Train
Why not the 302? I thought the 5 litre(4.9L) was the best engine Ford ever built?
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The 302 is a great engine, only it's harder to find than a 289 and they cost a bit more. If you wanted to spend a "bit more", instead of the 302, I would try to find a 289-4V Hi-Po from a '63-'67 mustang and have it completely rebuilt. The 289 Hi-Po featured a mechanical camshaft, threaded rocker arm stud (adjustable) and a recessed spring set. The other 289/302s use a press-in stud. You could have the machine shop bore it 30 over and then put an RV Cam in it. A little company called Holley makes a decent carb...
Anyway Pain, yes, the 302 is a great engine, but if I was starting another mustang project and replacing the 200, I would opt for the 289. Other than the reasons listed above, this is a '67 and the 302 wasn't offered until mid year '68. The numbers aren't going to match anyway, so maybe keeping the engine with the year isn't as big of a deal in this case...