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Of these two engines what is the advantage and disadvantage between the 460 and 360? Also what's the horse power and torque difference? Which of the two engines would you prefer? And which would win in a tug of war against each other?
460
No replacement for displacement
Wider aftermarket support since it was available until like 1997
More available in the salvage yards
Easier to build HP and TQ using a decent cam with stock block n heads (400 HP)
OEM heads respond well to mild porting (gasket match).
Use a 750 cfm carb on a dual plane intake.
Crappy mileage... around 10 MPG with a mild build.
360FE (specifically)
Last installed in a vehicle in 1976!
Smaller displacement
Crappy mileage but about the same as a 460 with all things being equal.
Crappy heads! Aluminum heads are available but they are $$$$
Significantly less aftermarket support.
Oiling system over-lubricates the top end.
Shaft-mounted rockers limits options from only a few companies.
Per dollar that you will spend, the 460 would be a better value. A 400 HP 460 can be built for about $3000.
The FE engines (mostly 360 and 390) are definitely more challenging for all the reasons HIO cited. Even with stroker crank and overbore, max CID is around 450. The 460 can reach a max of 557 CID. The 385 series engine (429, 460 etc.) will win that tug-o-war.
However, there are other options to consider depending upon your intended use. For example, an in-line six or small block V-8 will yield far better fuel mileage than either FE or 385 series engine.