I don't want to come off like some sort of originality nut (and if you check my threads you'll see I like to swap things as much as the next lunatic), but Volvo power in a Volvo is far cooler than some other make that would devalue the car (please don't tell me you're going to take off the chrome, put 20" wheels on it and install a farty exhaust). Anyway, I'm building a beefed up B20 with most of the $ focused on getting the head to flow better (V-Performance), and this will be backed up by a M41 that has been rebuilt. With 150 HP at the crank, motivation of this 2400 lb car should be very respectable.

I've seen later red-blocks swaped into the 122, but with considerable effort and in my opinion a V engine (unless it's a VR6) would be way to tight for servicing etc. If you need more HP a supercharged B20 can put out 200 HP - which is more than enough to get you tickets of many different sorts.

The advantages are that this combination is tried and true, you can get lots of advice on how, and in the end have something that can still get the pulse going. My other thoughts are that the more advanced your swap gets, the less likely you are to finish it (this should be one of Murphy's laws). If it does get done (and the for sale section in most news papers are full of 1/2 complete basket-cases) it will be a longer time horizon than what would amount to a weekend swap.

On the breaking front - if you have more go - you need more whoa (see 245GTi). I think the breaking system is up to all but the most dramatic of modifications.

Craig