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Loaf,
You need to check with your DMV and see what the legal problmems are before you do anything or your car may get impounded when they catch you.
I don't know what the limitations of the stock FI are but I would guess you could build a mild 1641cc and it would run ok. Basic performance mods would work fine. Try mildly ported heads with slightly larger valves, a good 1 3/8" merged header, mild cam and 1.25-1 ratio rockers. Maybe increase the compression to 8-1 or 8.5-1. Wouldn't cost too much and will get you decent performance and will appear stock (except the exhaust).
If you can legally get rid of your FI and run carbs the sky is the limit. You can take your type 1 to 2.3L but it will really cost a bundle.
A type 4 swap is a good way to go if you can do it legally. The cost will be higher than modifying your existing engine.
ken
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