Actually I think the frame changes were made in 1973, not 1974. I have a 1972 frame, which is the same as the earlier original frames (less bracing, lighter frame and I think steeper steering head angle).
Also, they went from 34mm to 35mm, not 35 to 36. I had to modify a later model 35mm triple tree/steering stem to work on my 1972 frame, as the steering head on the earlier frames is also about 1/2 inch shorter than the later frames, making the stem too tall.
The 447 engine is the easiest one to work on, as you can get more parts for it. I think the earlier engine is rumoured to make more power though, but I'm not sure on that.