As Peter has pointed out, you will either need to change the bell-housing on your '500' box and fit a '126' bell-housing, or fit a '126' gearbox and change the drive-shafts for 25mm (sometimes called 24mm) 500 shafts---the '126' drive-shafts are too long. This is not a difficult job, just a shade tedious (and easier with a 2nd pair of hands). 2nd hand '126' bell-housings are available through 'e-bay'. Whichever option you decide on, you will need to fit a '126' "wire-pull" starter. the 3rd special starter retaining bolt, the starter shield and the starter-brace---all are available. As Peter also pointed out,you may need to go to a'126' starter pull-wire. but I would suggest that you try and see if the original 500'scble will reach before buying the '126' starter pull-wire. Just as a matter of interest, the reason that Fiat moved the starter to the side of the bell-housing was that by moving it away from the top of the engine,they were able to gain 4 inches of extra space in the rear of the '126'.
If the decision was mine to make, I would go the 'bell-housing' route as the 500's gearbox is the stronger box, and learning how to double-de-clutch (which you really only need to do on DOWN changes) is not difficult to master. In "my yoof" I commuted from South London (West Wickham) to the Chelsea area every day in a 500, and found the d-d-c gear changing to be not a chore. As I have mentioned before, I got so used to it that I STILL find my self doing d-d-c down-changes on my 'modern' car---a Diesel Skoda Fabia!
If you would like to contact me direct (
[email protected] ) I will help you with a possible bell-housing supplier, and the other parts that you will need for the starter change. Just as a matter of interest, where did you get your '650'engine from?