Sentiment is the hardest part of the equasion when making these types of decisions, but the fact that you might not get back what you have into it is a simple fact we are all faced with at any level of restoration, so don't let that be the reason for potentially throwing even more good money after bad. Sometimes cutting your loses is a gain. Given the fact that you haven't even had the time to realize that you can't easily change plugs in over ten years, and now knowing that the previous owner mislead you and was not very compitent by what you have told us and by what I can see in that engine compartment like strange battery position, a way too small radiator with what looks like both a pusher and puller electronic fan, crappy general use hoses and an old single reservoir master cylinder for an upgraded engine swap?!?!??!?!?!?! I would be worried about more and more and more surprises rearing thier ugly head once you finally think it's over and the car actually starts getting used for almost the first time in a decade.
I seriously do not like some of the warning signs I see, and I can say that this is one of the cars I might have walked away from if I looked at it as a candidate for purchase. That being said, and my conscience now clear, let me offer up some thoughts if you are intent on keeping it. First, run all the numbers and make sure you know how that car was supposed to be originally and what you are really dealing with in terms of the unknown PO mods. It could once have been a six that was improperly swapped out for example. If considering going to a 289/302 don't forget you might be able to work out a swap with somone for your current 351. Do some research, you'll likely find someone with an exact opposite case as you since most want to upgrade not down size. Maybe also consider working around the 351, like switching to a rack and pinion steering instead, then the shock towers could be eliminated all together and not an issue any longer. If they are truly banged to hell, this may be a cheaper alternative in the long run and you will have more tech for your buck. Explore all options before commiting is all I am saying.
If I were you, and given your situation/knowledge/ability I would personally consider selling this one off and buying the absolute best car you can afford. A company like
www.jjbest.com could help you do just that. Think for a second if you bought say even a $10,000 car that was 90% or more restored at least where the mechanical and body were concerned, with only trim and interior tweaks to be perfect in the worst case. A car like that financed for say 5 years would only require you put down about $2000 and the payments would be like $150 a month. That's less than $2000 a year, and you will spend more than that on this car, I can guarantee. Not to mention that the new car would be usable at once and only require regular maintanence for your amount of use. Since you would have a new garage, you would qualify for special insurance like offered at
www.haggerty.com and pay some where around $150 a year +/- for total coverage of the car. No stress, no worries, all the pleasure and fun that the hobby has to offer. I look forward to a ground up resto some day, but trust me, I went this route on my first car and have never been happier with my choice, and I am capable of doing almost all my own work. It simply took me way too long to finally get a car and I was not waiting any longer to enjoy it.
This is all just IMHO so take it for what it is worth. At the very least just be open minded and don't let the past cloud your mind, make a clear decision. Good luck.