Do you already have a 250 in your 66? Oh I see that you do. You might be able to slot the motor mounts to drop the 250 another 1/2". Does your Mustang drive good now? If so the easiest route would be performance mods on the 250.Just a couple of thoughts...
A 200 with a turbo can be pretty fast and you can set the boost at level which may not grenade the engine to quickly and would certainly be easier that a 300 swap.
The 250 swap which is doable in the early Mustang and with slightly bumped up compression, 2v carb, cam and headers has power comparable to a stock 289.
Of course any turbo 200 or 250 or 300 will require new axle, suspension, larger radiator etc.
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