V8 swap? Or turbo slant six?

I think you should worry about horsepower in a couple of years when you can throw a few grand into a new engine. Or just do the 2 barrel swap to pick up a few horsepower and then spend money on things like the suspension or maybe even the brakes. As nice as it is to be able to go fast, it's also nice to be able to go around corners and stop on a dime. if you have a lead foot then you're probably better off with a slant that's underpowered because you'll break less things and get less tickets.