1 ton should be fine. I have one that is a 2 ton when it's boom is pushed all the way in, but you can't get it far enough under the car. So, I use it all the way out where it's 1 ton and i've never had any problems with it.
Thank you for the info this is the hoist 1 ton what do u think about this http://www.harborfreight.com/cpi/ctaf/Displayitem.taf?itemnumber=93840
the 2 ton should be more stable and dependable than the 1 ton. now to keep perspective, a 302 should weight around 475 add a c4 trans that weighs around 125 lbs and your over a 1/4 ton (500 lbs) in weight. the 1 ton with its boom fully extened will be byond max capacity. you will need the boom to be extended to clear the front bumper on our cars.
The best hoist is a 5 ton travelling hoist but the smallest "cherry picker that I would use would be a 2 ton. I use a 3 ton travelling hoist in my garage - but it only travels along one rail - no room for the full travelling hoist.
i have the two ton from harbor, bought it because it was only $40 more than the cheapest rental i could find around here. thought i would only use it once and then leave in storage. ended up using it three more times on different projects and it is good i got the two because you can extend it out to only have a one ton capacity for a higher lift (engine out of a boat still on trailer, lifted pickup engine)