I have no personal experience in CA but from reading the description it sure looks as if you are on solid ground. The swap may increase your insurance cost since you are increasing horsepower. I would call my agent and describe what you are doing accurately but being sure to not make it sound too much like a hot rodding deal.

Be sure to be factually accurate with the insurance company. If you mislead them they can refuse to cover a loss.

It sounds like you are doing the legwork to make a very nice swap. If you move the rear diff to the new car, the fuel economy may not suffer much. The cost of operating the v8 equipped cars makes resale in these times of high gas prices a bit hit and miss, so be sure you want this and plan on keeping the car for a long time.

Tom W

__________________
[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.