I like the smaller bellhousing, simply because it gives some extra room around the trans tunnel. Be aware however, that the smaller bellhousing has a smaller convertor bolt pattern, and also the steel plate between the bellhousing and block are specific to the bellhousing used. This plate is required, as it locates the starter motor. I think that Ford switched to the larger bellhousing around 1978 or so, and the 50 oz flexplate imbalance around 1980 or 81. So if you want to use the smaller bellhousing, you will also need the appropriate block plate, as well as a flexplate with the 50 Oz imbalance, and small bolt pattern convertor. To muddy the waters even more, there is a really small bellhousing/flexplate combination, that was only used in the V8 powered Mustang 11`s.
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