Least desirable of the REAL Z car series in it's origional configuration, but this is easily corrected..(Emissions bullshit, tendency to vaporlock).
Otherwise, as the other posts have said you can drop in the big 2.8 litre six from the later 280..
Great car, not many others will even come close to it's handling. 4 wheel independent, heavy antisway bars, suprisingly strong diff, and a big engine compartment..
Yes, I too have seen 350SB chevys stuffed in em..Really pisses off the Camaro and Firebird crowd to see that little ricerocket howl past em, then stick in the turns..
As to your question, it had better be a COMPLETE 260 for that cash. You're looking at basically a full resto to get it right, cause even if it sat for a year, you still have no idea how old the brake lines, tranny and diff seals, and other rubber components are, or what condition the chassis wiring is in..
Check er out. If it's a good one, and you get it running, you won't ever forget it..
Good luck
Meplat-