If you have the $$, I'd get a pull-out 5.7/A580 5 speed auto combo from an LX, leave it pretty much stock, or a 5.7/545RE out of a truck, I'd keep the MDS functional.

if you want to go a little cheaper, I'd probably look to a 5.2 mag motor, and keep the beer keg/EFI...if you found one that needed to be rebuilt, I'd run some KB167's at 0 deck, .039" gasket, and probably a comp XR258HR cam, some headers, the throttle body opened up to twin 50mm bore, and some 24# ford injectors. you may be able to use a factory computer to run it, but I'd probably contact board member Jerry for a megasquirt.

for a tranny with the mag motor, you could go a couple different routes. if the megasquirt or EFI controller you choose will control a 42RE, you could go that route. or you could go a 42RH and use the PATC method of controlling OD/lockup with hydraulic switches off of the governor port. with the OD's I'd look at a 3.55 rear gear with a 28" tall tire. or you could use a lockup 904 coupled with a high rear gear, like a 2.76 or 2.45 if the car is fairly light.