I am restoring a 36 1/2t highcab which came with a 207 engine that was shot. I got a 216 out of a 37 and had the same problem. Yes, your old 35 bellhousing, (BH) will not fit on the 216 engine. I desided to upgrade to a more modern multifinger pressure plate, the 35 has a three finger pressure plate and a carbon ring throwout bearing and is not easy to adjust. I guess that you could get a new BH and use the old clutch but the BH that fits the 216 is larger,not longer just wider. So I got a BH and flywheel out of a 38 and it works but there are still more problems. No problem with the 4 speed, it should fit. The problem is the rear mounts. I am not sure about the 1 ton frame configuration but in my case, the old mounts did not match up with the frame because the Housing is wider and the rear mounts attach to the rear of the BH, on the 35 they attach to the front of the BH So I had to move the BH cross frame support back 6 inches. Good luck with your project
charlie