i would go with the new 1.3 rallye. It can rev higher, it just misses out a bit of torque on the 1.6, although they both make 103-106bhp.
Easy to tune, and as everybody say, handle like a dream.
But the MK1 XR2 is just as good, cheaper and will qualify for classic insurace if you get a 79 one.
There 1.6 kent engines with cortina GT sized valves (large!) anyway. they come with 86bhp, but so much torque!!!
i can get from 80-110mph in 4th (4 speed box) in about 12 secs!!!
and mine doe 0-60 in 7.3 secs with the N20 on.
Makes the most beautiful 60s race car noise.
Mines lowered 2" on custom spax units, 2 deg neg camber. about 850kg, 45bhp n20 system. ears full group a rally exhaust system (70 quid!!), ashley 4-2-1 manifold (40 quid new!!!) uprated group n brakes, port matched and the head tidied by myself.
all in all, about 102bhp on the standard webber.
it handles better than the 106 now modified and whe the front/rear strut braces come, itsll be so tight. Lift of oversteer is extreem, but controlable (i can get round an entire rounabout in a drift if i enter it @ about 80mph.....did loose it one though, but i was finding the limits.
oh, and you can turn off the ignition then back on and a huge backfire in the exhaust (not carb) results, sounds like a gun shot!! and shoots a huge afterburner style flame out about 2 ft!
trust me, the MK1 is your answer.
need help deciding?
http://www.zetecinside.com/xr2/pictures/wdavidson1.jpg
http://www.zetecinside.com/xr2/pictures/kboulard1.jpg
http://www.zetecinside.com/xr2/pictures/beccy.jpg
and this pdf file show one of the best....wheels are too bight hough, bu thats for the huge brakes!!!
http://www.zetecinside.com/xr2/download/Performance_Ford_July2002.pdf