to use your transmission (which I would, its one of the tallest FD of any FWD trans) You need a D series engine made after 1988, see if you can get a D13 imported, I missed an opportunity on a D14 someone had here in michigan. With a turbo, and moderately lean tune you could have enough power for the hills, complete bolt in engine and higher mileage than stock.
P.S. if your friend can get more than one D14 or D13 or even a D12 but it was euro only and not likely to be in japan let me know, because im interested.
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