I did some work on the truck today. While the engine swap wont be nearly as smooth as I would like, it still wont be bad. I pulled the intermediate shaft off the transmission and got the transfer case to spin "freely". I think the brake drum is dragging pretty good so I think Ill need to back that off a tad. I still havent bothered taking an inspection cover off the transmission yet, though i did pull the drain plug... to have absolutely nothing come out. I shined a flashlight inside and reinforced the fact that transmission is absolute garbage.
Also, I may have started something with myself I dont think I like... the fella I am buying the 302 from also has a complete (minus box) split axle CCKW. From the pictures I have it is in way better shape then my body is, though I am kinda leery of the timkin running gear. He has offered it to me at a reasonable price so I might just pick that up to... just have to find a place to put it for the time being. He said it ran a couple years ago but... as with this truck, we can see just how long a "couple years" really is.