I just got an 86 Cougar. 5.0 runs, dont know how great, havent driven it yet. Should I A)drive it and wait till it blows, then rebuild. B) drop in a 351 w/ a c4? 351 is carbed.
drive it for a bit to see what all it will need once you tear in to it, might turn out to be decent.
If you go with option "A", then you'd better beat the living shiznit out of it for fun...although option "B" would be nice because you might be able to end up selling your old motor and trans combo assuming it's still in nice shape.
Either way, have fun or help to defray the cost of the 351/C4 build up.
drive it and work the bugs out of the car...get it running good. when you can afford a decent swap and have everything you need to do it right...go with a decent swap....
I say drive it. I wouldn't really do any swaps until it hits the point where it would cost more to get it going than to swap the motor.
Get it running decent and enjoy it for a little while.