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Id never entertain that transplant, the slam panel on the smaller engined mk1's isnt removeable which means getting in behind there to do anything would be a total pig! dont even want to think about changing the oil filter or the radiator! lol
Saying that it has been done! so why not! if u have small but really strong hands lol
Personally I would go for a valver over an RSI but if you're doing that anyway you might as well go the whole hog and drop a williams engine in there if you can afford it as it should onyl be about £200-£300 more. From what I've read the volvo turbo option isn't really worth it, especially if you are going to try and run it on an EFI system due to the wiring issues. If I was going down the turbo route I would drop a 5 GT turbo engine in there as there are much better tuning options for it.