If the traffic you are sending is SNA then any IOS containing the IBM feature set can be used to configure DLSW to carry the SNA traffic across an arbitrary WAN topology. The 1600 is the lowest end router to contain the IBM feature set.
Cables etc would depend on exactly what interfaces/cables you have in the S/360 but, assuming these are serial interfaces, you typically use the Cisco router to provide clocking so you would use a DCE cable that matched the physical type of DTE cable coming from the S/360, X21 V35 or whatever.