"Is it possible...." Of course it's possible. But you'd just be swapping one set of headaches (?) - (and really, the B30 is a terrific motor) for another set. The frame rails on the 140/160 chassis are way narrower than the 240/260 frame and if you set the motor upright you then have to deal with a cockeyed transmission.
If you want to re-engineer a 164 to be more relevant in todays world it would make more sense to concentrate on devising a more modern transmission. I don't know if it's been done but the Toyota Supra uses a version of the AW transmission that would seem ideal. No doubt a 164 presents a stateliness of line that makes rescuing one a worthy endeavor :-) Dave