Really quick update... I have over 7000 miles on the conversion now, worked out some bugs and everything is working great now. Getting between 20-22MPG on my regular commute, which is a big improvement over the 12-13 I got before. Especially considering it is winter time, and diesels aren't known for getting terrific winter fuel economy.
To answer the abover two questions...
This conversion is not for the faint of heart. I have a lot of experience building hybrid vehicles, and this is not for the novice.
As far as welding, I used my MIG welder with 308L .030" wire and tri-mix gas. I pre-heated the casting with MAP gas for better penetration. There are no signs of cracking after my initial 7000 miles of driving.
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