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**PORNHOUND**
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Ah, a window regulator....... those are somewhat of a pain in the ass to replace, I can't remember if the Mustangs regutator's are rivoted in or if they have bolts...... even if it has bolts it's a two man job, someone to hold the window up while you replace the regulator. in the meantime you can clamp a small pair of visegrip pliers to the regulator to raise and lower the window......
As to the engine swap, the 302 should drop right in and hook up to the C4 tranny...... I did this to a 67 Cougar years ago, one thing I would buy is two new motor mounts.... the old ones are prone to breaking (the drive torque side.... drivers side). You'll probally have to get a muffler shop to rebend or replace the exhaust system outlets..... I can't remember if the 302's will match up with the 289's...... I think I just had a new dual exhaust system installed. My Cougar was a fast little car, a good trick is to install air shocks.... pump them up tight and drop a 100 pound sand bag in the trunk to drop the ass end down, you'll corner like you're on rails! 
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