Since no one is jumping right on this one, maybe I'll get it started. I think the 360 and drivetrain are a great start, especially since you have some history and attachment via your Dad owning it since new.

I think the logical car to put this package in would be another Chrysler product, such as a Dodge or Plymouth from the late '30's. The '38-'39's I see selling seem to go for a very reasonable amount, compared to Fords of that era. Their engine compartments aren't the widest, as they originally held straight 6's, but it should still be do-able.

For suspension, I would use something like a Fatman or other Mustang II set up, and out back an 8 inch Ford, or maybe your Volare' rear, if the width isn't too much. If you choose one of the sedans in either a 2 or 4 door version, the cost will be significantly less than the coupe version, and you will have room for that family you mentioned.

Outfitted with Air , cruise, with comfy seats, one of these cars would be a great long distance cruiser. Parts are still no problem, and the bodies seem to be built out of some of the heaviest gauge steel I've seen (we're chopping my '39 Dodge pickup, and have burned up a few cutting disks)

I wouldn't change the frame, as they are pretty beefy as is, and I really like the idea of keeping the engine and body in the same family. With a simple paint job, simple wheels, and a nice interior, this would be a standout from all the other, more common brands out there.

Just my thoughts................