I was thinking the same thing, that basically a 400 is more desirable (and fun) but the original 326 would have to stay with the car (if not in it).

How can I know if it's a "numbers matching" engine? If I find that it's not the original engine, I suppose there is no real point in keeping it if I do the swap.

And, yes, I did mean TH-350 (oops).

Thanks for the thoughts, it sort of confirms what I was thinking. Also, I don't expect to make money on this car but I'd like to limit the bleeding of my wallet

Any advice on swapping out the 326 for a 400? I've read up somewhat on it and it looks like it is pretty straight-forward. I am thinking I could even keep the 2-speed auto tranny I have now for awhile before replacing it with a TH-350 or -400.