I've done this. It bolts up with the 4 main bolts and starter, but all of the other minor bolts do not fit. In addition, the 260 is about 1.5" longer than the 240 so you'll have to mix and match components to make it work up to and including moving the motor forward or getting the drive shaft shortened. The shift linkage is in the same boat. Oh yeah, you need to modify the tranny mount as well.