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Just received this link in a spoof email so ebay users beware!
http://izopol.pl/~test/usr/ISAPIdllSignIn&pUserId=&co_partnerId=2&siteid=0&pageType=-1&pa1=&i1=-1&UsingSSL=1&bshowgif=0&favoritenav=&ru=&pp=&errmsg=8.html
same here Deb, I was with Elephant last year who were very competitive, for that year but at renewal (December) they were like £100 more expensive than anyone else! Now with Admiral (same company I know) and paying about £450 f/c me and missus on policy :)
DVLA would need to be made aware of the engine change as the engine number would be different, but if it's like-for-like then I don't see why it would affect your insurance?
Just check the physical connections. You have a mk1 ph3 right so I'm not really familiar with those engines but check the main earth to the starter motor first. Then try and trace the main earth to the engine from the chassis.
Lowering cost me £35~ for the springs alone :) and edde is correct the wheels need 5mm spacers on the rear or there'll be rubbing on the inner arch liner.