XU-1 M20 3rd gear is the same as a normal M20. The only difference between an XU-1 M20 and a normal M20 is input shaft and cluster.
What he is doing is taking an M20 box, putting an M21 input shaft in and an XU-1 cluster.
Where you are gaining from the dude you are talking to is the strengthening of the box. Makes it capable of handling a V8 rather than being a hand grenade.
1st gear and 2nd gear ratios will still be identical to V8 M21 though, and will be a pain to take off in a big heavy car like a HQ-HZ van. The only difference is you will have a 1.25:1 3rd gear instead of 1.38:1.
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