Thanks everyone for the help with this, I really didn't expect such a response. I have worked on cars for a long time, but not in the off-road world, so I know very little when it comes to that. I think based on what I have heard I am going to start measuring and adding to see if this 302 swap is possible, would prove to be amusing anyway. And in response to the different posts:
Thanks for the offer on the Transmission, but mine had 170 when whatever broke...I am assuming a bearing since it still actually sorta drives, so I am either going to tear mine apart and build it if nothing is broken or find another..if I dont' do the V8 thing...:-)
I want to use a overdrive transmisson if I use a v8, so I can get something that might resemble gas mileage, they do make a converter for the AOD to Toyota transfer case, but it is 650 bucks or so...more than I want to spend.
The Samuari case looks like the easiest thing to do, I can get driveshafts made, just a matter of fitting the motor, the big AOD, transfer case, and hopefully somewhere to put a radiator, I have a 3" body lift, so that will help considerably I think, if nothing else it is worth the shot if I can find a good samuari transfer case around this part of the world reasonably. (TN)
The next thing I have to deal with is can I use the fuel injection, I know its possible, I have the donor mustang with all the wiring intact, just a matter of hooking the speedo, tach and things up, if I want to do it, I want to use the factory gauges...just to keep it simple looking, or a more elegant job I guess. If not, I will just hang a carb off of it, simple enough.
Thanks for everyones help though, I will keep you guys posted as to what happens. btw, my fuel gauge reads halfway at full, anyone know where to get a sending unit other than suzuki? Thanks again