I was harrassed into doing that engine swap. I've told this story before but here it is again. I pulled it out of a 1980 510 (A-10 Stanza for you guys across water) and dropped it straight into the 1200. Literally, it never touched the ground. I made up some motor and transmission mounts and started cutting the radiator support to fit a larger radiator. The pan did just touch the cross member and the water pump was a scant half an inch from the radiator. Hood clearance wasn't really an issue with the valve cover as the cam sits below the rockers on the NAPS-Z unlike the L-series. The carburetor was another issue entirely! I used to use the hood to seal the top of a K&N air filter. I later bought one of those foam dome type filters and a bitchin' set of air horns. Of course, I had to install the 300ZX hood scoop to clear those.
As for engine mods, it is a Z-20 bottom end bored, I think, .040" over. The head was totally remanufactured with new everything and shaved...um.. alot, I don't remember how much. The cam was, and I quote the dirt track engine builder who races NAPS-Z powered cars, "the biggest cam that will physically fit in the stock valvetrain without modification." I don't remember the specs, it's been a while since I built that engine. Weber 38/38 DGAS synchronous carb on a stock manifold. The header was my pride and joy!

I spent almost a month building it.
We tried to run the thing on a dyno once but were having trouble with the computer. The dyno's computer that is. Every car we tested that day showed between 63 (my white $5 car) and 68 (the Chickenhawk) horsepower. But they all registered different NEGATIVE horsepower numbers! Taking the lowest negative number and the highest positive number I saw on a run, I claim 175 horsepower for that engine. Was it what I expected? I'd have to say yes, that is about where I was estimating/hoping it would be.
The thing had the most awsome idle and with the solid mototr mounts, the whole car would rock side to side! It went "Bruup bruup bruup bruup bah pippety pippety pipety pippety bruup bruup bruup..." and so on. Each "bruup" would rock the car and the "pippeties" would smooth out. I hesitate to use this analogy but I was once told it sounded like a Harley idling. I thought it sounded better than that but it gives some idea of the idle.
Damn, I sure do get long winded when I talk about that car. Don't I?