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I will try to answer your questions as best as I can:
Answer #1:
-The AT --> M46 tranny swap should be a bolt on swap though you do ask a good question about the flywheel. If the Diesel engine is a 6CYL then I would say NO the flywheel will not work. If it is a 4CYL then I would say 50-50 chance for it to fit to the B23F engine. If in the end the flywheel does not bolt up hit the boneyard and grab one from there. It seems that the boneyards I go to I can always find about 10 240's that have the M46 tranny's.
Answer #2
-I would choose which ever body has less rust. The Diesel should have heavy duty springs and better sound-proofing material but I think that's about all. The 264 would be a better choice (if it has less rust) since the 264's came with the K-Jet systems so you will have a main & in-tank pump already in the car. The 264 also has stiffer springs and usually comes with power windows and a sunroof. As far as swapping out the old style (pre-81) dash with a new style (81+) dash it is a bolt on swap. Of course you will have to find that 81+ dash with no cracks and at a good price. Besides the dash you will need the following:
Pre-81 to 81+ Dash Swap:
-Dash Mounting Brackets (One per side)
-Side & Center Vents
-Newer Style Instrument Cluster
-Glovebox
-Gauge Pod Bracket (Plastic bracket that holds the instrument cluster and gauges (2) / turbo gauge set (+3) to the dash.
-You'll need to do some re-wiring for the new instrument cluster and gauges but it is very little and very simple re-wiring.
Below is a picture of the Dash Mounting Brackers I mention:
Left Side OLD STYLE (Pre-81) BRACKETS / Right Side NEW STYLE (81+) BRACKETS

As you can see in the picture above the old style bracket has a mounting hole that is TOO high for the newer style dash so in order to do this dash swap youi must get the brackets too.
And last but not least here is a look at what the dash swap will look like once your finished:
1979 264GL - Pre-81 to 81+ Style Dash Swap


Hope this info helps. Best Of Luck with your projects!!!
Sincerely,
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Julio Meza 1979 264GL B27F 124K --> BW55->M46, CLS, IPD Sway, 81+ Dash, Gauges, Next: FLATHOOD 1979 262C B27F 159K --> Restore Project w/Possible B21FT 1984 245DL 212K -->Wifemobile
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