How is the Ranger project going now? Did you pull the 2.3 motor yet? Don't be afraid to seek the advice from some professional mechanics, especially in doing the 302 swap. A swap like that is not as easy as everyone makes it sound. You will definitely be needing a new transmission-one that's built to withstand the torque of the 302 V8. The original transmission for an 87 4-cylinder was most likely the TK5, an early predecessor to the M5OD. You'll want to look for the Tremec T-5 from a Mustang.
Have to say though that I appreciate seeing people start to take an interest in restoring these early Rangers. Makes me feel better that I'm not the only one!