My engine is a heavily modified Z20LET, expensive and very time consuming ground up project, but immensely powerful (for a VX). Click on the link in my signature if you want a read of the project. It has made my car relatively heavy as I mentioned, and it has lost some nimbleness due to weight and other unusual mods, and it is high maintenance in various way, eg new air filters required every 1500 miles!
I think buying an NA and switching the engine to a B204 (or better still a B234) would be a very wise choice. If you don't already know, Neo Brothers are you friends for this. VX220s really come alive with power, if you attend to the points I mentioned above and double check the bushes, brakes etc the base car can nicely handle 425 to 450 BHP IMO. Even 300 BHP is a lot and will make you faster than most cars out there.
If you want an easy and proven way to make power though, there is almost a "kit" of known parts for supercharging a healthy Z22 engine to a sensible 300 BHP. After that the S/C'ed paradigm has an Achilles heal with over high inlet temps that is not yet solved on the VX220.
The F23 does not have a LSD as standard. Quaife and others make one for the car, and it does help a bit IMO, but is not vital by any means.
If you go ahead with the Saab engine, I must stress that you need to rigorously consider how you will effectively cool your inlet charge (and your engine + bay to a lesser extent). To give this context, remember that a 400 BHP engine will make the heat of 300 1-bar electric fires...
Edited by Nev, 27 December 2014 - 02:22 PM.