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Re-powering a 1964 Shepperd 26 foot cruiser

Hi forum contributors.
I am presented with the challenge of re-powering my 1964 Shepperd. It has a 318 Chrysler M (wide block - short block) which has failed and because of the lack of parts for the old Chrysler, I have decided to re-power with a 5.7 Mercruiser. My mechanic recommends I buy a naturally aspirated engine and the required conversion bell housing and pressure plate and flywheel to connect to my existing Velvet Drive 71C Drive Ratio 1.1: 1 transmission (straight shaft). I know that I am embarking on a journey that may seem simple enough and I would like input to guide me. Reference to a good supplier or advice on what to buy would be greatly appreciated. Other options are also welcome.
 
Another option is that I may have a wide 318 in my stash....it's in a milk truck. Ran good 30 years ago, ha! What's wrong with your 318?
 
Another option is that I may have a wide 318 in my stash....it's in a milk truck. Ran good 30 years ago, ha! What's wrong with your 318?
Sadly, frost damage I think since there is water in the oil. I don't know exactly but I want to avoid the risk of the lack of parts. I don't know much about engines and I have to rely on experts. I will keep your comment in mind when I speak to my mechanic next.
 
If you visit your local Mercruiser dealer, they can set you up with the proper power and offer attractive financing that makes a repower less painful. While putting a random milk truck engine in may be attractive, it's best to get something new with a warranty.
 
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