I'm just brainstorming here. I should be getting my 81 wagon back soon, but I won't start the project till next year. I gave it to a friend when I moved to TN, but he didn't do anything to it and said I could have it back. I just have to get it from Denver to TN. Here's a pic of what it looked like when I owned it.
It was a 6cyl. 4 speed car. The engine is actually in my 86 Eagle. I got a T5 for it before I gave it to my buddy. Since I already have an off road capable Eagle, I want it to be a 100% street vehicle with an emphasis on performance. I'd like to shave some weight off by not reusing the heavy 258. I'd be happy with 200 hp. I don't want to go to high because the front cv axles might not be able to handle much power. To go through the hassle of doing a major engine swap, the new engine needs to be a bit lighter to make it worth while. I would love to put in a Vortec 4200, but it is quite tall and I don't think it will fit under an Eagle's hood, plus it's not much lighter but has a close to 300hp. I'm leaning towards a Ford 3.0L Duratec V6. 200+ HP and weighs in the mid 300's complete. There is a bellhousing to use a Ford T5 which should work with the AMC T5. I would even consider a 4cyl turbo engine. I realize some major fabwork will need to be done, but I don't like average. I'd love to get some input, besides just stick a 4.0l in it.