I would like to put a newer  engine and transmission in my 1960 Catalina. What will work? I have heard problems with the transmission tunnel, drive shaft and engine and trans. mounts.  Any help?  Thanks.  

there is a bunch of stuff to change... nothing impossable...

you might find more info over at this sister magazine...

http://www.highperformancepontiac.com/index.html  

That car has a pretty big tunnel, so you shouldn't have any problems with a late model trans. If you're installing a stick, you'll have to cut a hole for the shifter obviously.

Since the '60 catalina's very similar to a '60 Impala/Biscayne/BelAir, I'd suggest looking at articles where people have done the same thing with the Chevy version, and you'll get a good idea of what needs to be done.