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I have a 460 in my 53' F-100, I'm pulling it and completly rebuilding it. I need to know what works the best with the 460's so I can smoke all these punks talking trash on fords PLEASE YOU GUYS! I need help from whoever knows what works the best with a 460. THANKS!
In most states your only legal issue regarding the engine in a '53 should be the level of exhaust noise.
Using $2k as a budget goal, I'd get the engine out, torn down, measure the bores, crank throws and mains to determine what it needs for the shortblock rebuild. If it needs boring, new pistons/rings, crank turned, decked new bearings or just a hone, new rings and bearings will be the first step in determining what portion of your budget will remain for modifications.
As for traction you have a few options available. You can use a Detroit Locker, limited slip, or a Track-loc 3rd member. Gearing will be a factor also. The higher the ratio the faster your wheels will spin. Look at doing a ladder bar system but with the budget you have this will be a little out of your reach at the time.