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How much hps can a stock differential handle 1800

I am in the process of restoring my '68 1800S, and it appears that the engine may need some work. So I am faced with the question, should I fix it, get another Volvo engine (B18 or B20) with less problems, or new, or go for v6/v8 conversion. Not a huge fan of tons of horsepower, but would not mind smokin' some hot shots, for the fun of it. So the other question is if I go with the conversion, how much hps can I put in the car before I need to replace differential, suspension, brakes, etc. I also cannot afford more than $2k or so for the whole deal.
Anyone with personal experience in a similar situation is welcome to share their experience. THANKS!

totobgoode
'68 1800s; '73 1800ES






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