Yep, haven't done one since the late 70's lol. IIRC the bearing retainer is larger on the later transmissions, I remember turning one down on a lathe to fit the early bell

Is no problem cutting down that step. I did it on a set of C1AE heads with nothing but a hand drill.  Yes a drill press or mill is nice, but you're just removing the step so you stop when the step has been leveled out.  If you are cutting a pocket deeper a drill press or mill is helpful as you can easily measure cut depth.  I have both a drill press and mill, but used a hand drill as it was easier and faster, and does just as good a job. Setting stuff up in a mill take time.  A head machine is nice to have.

The cutter uses a pilot that locates into the guide. They run about $100. Shops have been doing this this way for 50+ years. 

Any chance you have a part # for that particular cutter? I have an assortment of the cutters for cutting down the guides for seals, but not the one for cutting the seats. Thanks!

Yeah, those things are simple as dirt, made so the average farmer could work on them. Mine is now 76 years old, but has 1154 original hours on it, and sounds like a Singer, steering is tight, everything works. Very relaxing to head out back with the mower for an hour. When I was a kid in NY my gramps had one that had been worked hard as an ag lime loader for years, and had the flathead Merc piston big bore kit with no muffler. I plowed snow with it for years, it would holler pretty good

I'm a 3" straight-thru perforated core, 6" round can 18" long truck resonators man- does wonders for an FE with a lotta squeeze and a lotta stick- trust me. Not too popular with the gendarmes, and not for the faint of heart- but dayum  Real deep boom-boom at low speeds, and just howls when it comes on the cam

In 1975, I had a friend with a '66 390 Comet, whose dad was the shop foreman for a local short-haul trucking firm that had a fleet of C800's with 391FT engines, so he was "well versed". The Comet popped a head gasket, and his dad showed us how to change the head gasket without pulling the intake, as was the factory procedure. Considering that it was shock tower car, it went pretty well, just took a lot of patience. He also told us about the problems with the oil drainbacks in the heads clogging, and had a factory Ford tool for enlarging the drainbacks in the truck engines. Only time I ever heard of such a tool, but he had one and he was pretty sharp. Flash ahead to 1977, and a gal friend who knew I had my 406 car says hey my girlfriend has a Galaxie she wants to get rid of, smokes and runs real bad. So I go look at it, pretty cherry 500 fastback with perfect interior, 390-4V etc. She starts it, running poorly on about 6 and fogging skeeters. She says can you give me $200 for it? Well, OK. I pull the plugs, fronts are fine, backs oil-fouled. Drip pan goes underneath and pull a valve cover and get black rain- the drainbacks were completely clogged and covers full of oil. Took a lot of digging with a screwdriver to get all the gunk out. A couple oil changes and it was running sweet and clean. Not a perfect return path indeed

Ok a new one is over 500 now so hopefully find a good used one

It's an Offy 360 1x4

I have an old Offy or Weiand on a 390, have to look

Not fond of, or impressed by word salads myself. Talking down your nose at folks is not the way to make friends, and definitely does not impress people- especially pretty knowledgeable, well respected people