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I am stuck in a rut. I have been pondering about the selection of drivetrain components to install in my 78. I am unsure what would be a good combination to install. The primary purpose is basicly to ride dirt roads in the mountains and some mild terrain I plan to have oversized tires and a mild lift. Currently it has a big block in it and a C6 transmission. Should I keep the current setup and rebuild or maybe go with a small block. I am also curious about a manual 4 speed setup. Is this easily accomplished in a 78 model and if so what is needed? One more thing to convert to disc braking all the way around is there some kind of factory setup on another vehical that could be easily installed.
What is the reason for getting rid of the current setup? What needs to be rebuilt? The C6 and NP205 (I am assuming you have this transfer case) are pretty strong. You say you have a big block, is it the 460 or 429? If so, they are both easily rebuilt to get lots of power. The 78 bronco was only available with a 351M or 400. The 460 is a pretty easy swap since the bell housing is the same and only requires new motor mounts which can be found easily.
There were 4 speed transmission available also for these engines that would be a pretty direct swap if you can find a donor truck. The other option on these trucks was the all time four wheel drive (NP203) transfer case.
As for the rear disk brakes, you can buy kits to conver the rear, no need to swap in a new axle. Besides, you will not find a better axle for your truck than the 9".
If you are wanting to swap a more efficient motor, you are going to have to do some custom fabrication to make it work, but I am sure it could be done with a lot of research. I have seen one guy that swapped a complete drivetrain and interior out of a late model F-150.