Dan. Yes, some '56 Birds did come with 292 engines equipped with the 3 speed only manual transmission. A friend in the Syracuse area had one and I've seen several at CTCI conventions.
I'm still surprised that Dale has a '57 C code that was equipped with a 3 speed with overdrive transmission from the factory. Since it did come from the factory with overdrive per his data plate, AND assuming that the tranny hasn't been changed out over the last 60 years, I'd expect it to be a T-85 rather than a B-W 259. As Dale indicated, having been produced THE last day of production of the '57 'Birds in December of '57, who knows what they did on the production line that day. Maybe they put a 312 in it, too, but used the two barrel intake manifold to make it look like a 292 that C code 'Birds were scheduled to have installed.
Usually considered to be the 'base' model, I saw one C 'Bird that was LOADED with options about a year ago in the Buffalo, NY area. It had power windows, seat, brakes, steering, two tops, fender skirts, AND a Fordomatic transmission that I ASSUMED had been installed since it was originally produced. I did not check the data plate beyond noting that it was a C 'Bird.
Hey! Life can be full of surprises!
NoShortcuts
a.k.a. Charlie Brown
near Syracuse, New York