For 253 go blue motor. 4 barrel carb and electronic distributed is standard on these. A mild cam will help and not harm economy too much. Extractors too.
Aussie 4 speed(m20) is ok. Celica 5 speed would be ok if it came in the donner car. 3:08 Salisbury diff will be ideal if you are doing highway miles for economy. They are better with this diff all round in my opinion anyway.
Make sure you don't use a commodore engine as the cost of changing sump and ancillaries will not be worth it.
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