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I have an 82 Bronco, which lost the 300 six to a 351 M. I had the same problem as you and I fought it for a long time before realizing I had a faulty weld in my new exhaust. Are your backfires all through the tailpipe, or do you get some through the carb? Check all you exhaust system for leaks, if you find any, no matter how small, get them fixed.
That hole sounds like where the oxygin sensor would be located. I recently replaced my rusted and cracked Peices of #@! stock manifolds with a set of hedman headers. The old manifolds came off in three pieces on the passenger side and two pieces on drivers side. The new headers came with an allen head set screw to plug the threaded hole on the passenger side header. My Y-pipe has a cross pipe where the oxygin sensor is currently located. I'm planning replacing the rest of my exhaust system from headers back.
Rezvani's Latest Post-Apocalyptic Monster Is a Ford F-150 Raptor Underneath
Slideshow: Called the Fortress, the 850-horsepower pickup combines Raptor underpinnings with military-inspired features, survival equipment, and a starting price of $285,000.