going with the diesel from a smart for two would get awesome millage, and be really cool. But it would also be very.... very expensive, and complicated, and importing all the parts would be a pain int the a$$. If it where me this is what I would do.
VWvortex Forums: 1985 vw diesel swap into honda crx ... but with a turbo diesel instead. Advantages, still really great fuel economy, my jetta diesel gets between 47 and 50 every day all day, much much easier as the parts are available locally anywhere you are. The assurance that any parts you need will still be available locally for the next decade. And the fact that the whole shebang will only set you back about 1000 dollars as apposed to the 5000 to 10000 I would expect you would end up paying in total for a diesel out of a smart for two. And even better no ecm to deal with. Anyway my two cents