I figured I should start a new thread on this. I've got project decisions to make, and I'd like some feedback on how to achieve relatively high mpg. I'd like to do it with the car, not driving tricks. The "big ticket items"

are engine, weight, and aerodynamics- not necessarily in that order. In other words, a light car with a smaller engine and some aerodynamic improvements.
The base vehicle is a '61 Ford Ranchero, weighing in at ~2400 lb, not very aerodynamic, had ~85 hp stock. Option one would be to leave it intact and a goal of 40 mpg at 60 mph. Do you think it could be done with a small spark-ignition engine? How about a VW Rabbit diesel pickup engine swap?
Option two is to slice and dice the Ranchero into a single-seater, at about half the weight and frontal area. What kind of mpg do you think it might get with a 1600 cc (~100 ci) engine (Ford Pinto 1.6 L or Toyota "hemi" 2TC 4banger)?
Thanks