What are your eventual plans for the engine? For a mildish small block, rather than hack up the trans tunnel, I would consider selling the T56, and installing a T5 instead. The T5s more compact size should fit nicely, and although they are not as strong as a T56, I doubt that you would hurt the T5 , depending on how you plan to use the car. I ran a junkyard T5 for years in my low 13-high 12 second daily driver street/strip 302 Fairmont and never hurt it.
Good question, and good point. I eventually plan on putting a fairly peppy 363 cube SBF in it. 500HP give or take.
A 5 speed would be an easier fit and probably live a long time if i got a good one.
But for now, the T56 is essentially free, and it came with a brand new bell housing,trans mount cross member, clutch and clutch fork. so I will give it a shot. lowering the motor a bit and some relatively minor floor brace trimming are all that is required according to some. Even if i have to modify the tunnel, I am already going to be cutting and welding a bit on the PS floorboard so a bit more ( ok, maybe a lot more ) cutting and welding on the tunnel isn't much more of a stretch.
If i were starting with no trans, I would be right there with you, a T5 would be the obvious choice.