Summer 2006 . . .
The summer pretty much came and went with obtaining parts and some electrical work.
I needed some replacement Talon front-end parts -- parts that didn't quite make it through the disassembly process.
The big risk I had by trying to stick with the original suspension and steering for the V8 RWD conversion was the power steering rack. The rack runs horizontally along the lower rear of the firewall. This would force the drivetrain to be mounted lower in the subframe for clearance.
The location of the power steering rack prevented access to the firewall in order to carve out room for the bellhousing. Hence the need to mount the V8 more forward and lower.
I started to clean up the electrical under the dash. It is annoying to see the hack jobs that some audio and security installation companies undertake when installing systems.
It wasn't pretty, and I spent quite a few nights soldering and shrinktubing wires back together after I removed both systems.
Fall 2006 . . .
My transmission was built by JMW Automotive in Kitchener, Ontario. It's a 4-speed Borg Warner Super T-10 with custom gearing to accomodate that 2.88 rear end gear ratio. I also got a bell housing and flywheel from JMW. Here's the pic below.

Getting the tranny gears figured out was not easy for me (read: not a big math fan). I learned how to calculate the desired gearing through a good deal of research on transmissions and gear ratio calculations.
I wanted a steep first gear to take me up to a reasonable speed prior to shifting to 2nd. In other words, shifting 3 times under normal conditions to reach 35mph was undesirable. Also, I wanted to play a little with the gearing to get into 2nd gear quickly without losing too much RPMS. Here are the ratios I ended up with:

2007
A disappointing year overall progress-wise. It ended up being more tear-down that build-up.
I ultimately had to yank the original front suspension and steering as I was not happy with the engine/tranny/bellhousing location. I need to hack the firewall out to make room for the bellhousing. If that also means I need to hack the tunnel along the middle of the car, then so be it.
Conclusion: I will be searching parts/scrap yards for a suitable front end to weld up to the existing subframe. The other option is this little gem from Morrison Chassis:
(Morrison chassis kit pic here)
I took some time to clean up all the electrical under the hood in anticipation of tracing what will stay and what will go. Also pulled the dash out. Here's a few pics of yet more of the tear-down/clean-up. It is truly a shell now.
(pics a-comin')