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I'm converting my 66 I6 to a 302 V8. Need input and suggestions for best way to attack the rear end. Is the rear sufficient for my 302 for street driving? If so, can I change from the 4 lug to 5 lug easily? Should I go to an 8"? If so, what are best donors?
 
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Do it right and swap in an 8" rear and V8 disc brakes up front.
On the rear, find one from a '64-66 Mustang or a 75-79 Granada/Monarch. The Granada rear is still fairly common at the yards and will drop right in, I have one myself. While you're at it, you can use the Granada's front spindles and discs, I have that also.
'67 and up Mustang rears are too wide for your year.
 
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