I think you should take the advice from earlier and fix the problem with the 403 if you have total crap mileage. I think that what Vern said is true, for the money you spend swapping in a different engine, you would probably blow your margin on the swap. Is this going to be your daily driver? My daily is a 76 Electra, and gas has never been a problem for me, (18 yrs old) good mileage would be nice, but in reality, if you aren't always driving, it isn't a big problem. You mentioned it's a small town so you won't have to go to far to school and such. The only problem is, when you hang out with your friends, they will always want to roll with you because you have a bigger, more comfortable ride.
If your starting with a 403, then a 260, 307 or a 350 olds motor will bolt in with the same mounts and tranny. Anything else will require changing frame pads and maybe the tranny too. If you want mpg. the olds 307 will be hard to beat and was available from 81 until 90 in a variety of cars.
i'd go with an olds 350 , those 307's are nothing but boat anchors, IMHO a 307 would be lugging hard pulling a heavy electra
I'd do a 350 as well, I almost bought a cutlass supreme 307, but I read an article found here, that kinda convinced me otherwise, and I also found my Lincoln instead. If you read enough, the guy states that he got smoked by an S-10 the day he drove his 1987 442 off the lot.