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REFLECTOR: XL engine choice: 260HP vs 300HP

I'm looking for opinions and experience with regards to engine selection for my
XL-FG project.

I'm definitely going to stick with a certified aircraft engine, since I
simply don't have the knowledge to feel confident with an auto conversion.
So the decision is between the 260HP and the 300HP IO-540.

My thoughts are that the 15% difference in horsepower isn't going to make
much difference in performance.  I would think that the rate of climb would
be the most improved.  15% isn't going to do much for the cruise speed.
I'm leaning towards the 260, since I think the added weight and fuel burn
are to big a trade off for the incremental performance improvement of the
bigger engine.  

Can anyone help me out with this decision?