My '53 Dragon has a correct engine in it, but it's not #s matching--it's out of a Manhattan. I don't know how that would affect points in a show, but I just drive mine. Parts are not hard to find for the 226, you can also buy whole, rebuilt engines. I know Rudy Philips (760-789-3608) has them for $2,900 + $450 core charge, and I see in the monthly bulletin that Ed Ewing (530-241-7990--I'm not familiar with him) has them for $2,200 w/exchange.
With proper maintenance the 226 is a pretty good running and reliable engine, but I know different people have their preferences. At any rate, congratulations on your new purchase and welcome.