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I could think of quite a few fun nissan engines.
cd17 diesel
sr16de (hard to find)
sr16ve (sweet revving engine)
sr16ve N1 (only 500, front drive)
sr20de (there is a 160hp version of this that has some type of valve or cam timing system for the 240sx)
sr20ve
Personally I'd go for a 200hp sr20ve, variable valve timing, 10-1 comp, header, exhaust. Should put down 180whp with a good header intake and tune. You could use 240sx trans.
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