For those of you that dont know i am putting an L18 and bluebird 5 speed in my "79 sunny, Do i have to change the existing cable clutch to hydraulic? What would be a suitable but affordable suspension and brake setup for road use, and the occasional motorkhana and hillclimb.

Yes you do. It's piss easy though. All you have to do is cut a hole with a holesaw between the two studs that poke through from the pedal box. Then grind off the studs, and redrill new holes at the correct centres to bolt the master cylinder on, using longer bolts stuck through from the inside. Then just mark the pedal, take it off, and drill a hole in it to place a pin through to connect it to the master cylinder pushrod. the push rod wont line up perfectly with the pedal, but there is enough come and go in the rod to make it work.
Bluebird struts almost bolt straight in. You have to change the strut tops, and have a ring made to adapt the bottom of the strut, to the sunnylsteering arm.

Is the standard sunny diff stong enough or should i opt for a stanza diff, Ive read in previous threads they bolt straght in

With a standard engine the diff will take the torque as long as you dont thrash it. I recently blew the one in my coupe by doing a 2nd gear standstall. Pitty we didnt get stanzas here, would have life easier for the conversion e.g the xmember bolts in, and diff as well apprantly.

The L18 going in is basically stock standard, just been reconditioned (head has hardened valve stem seals ect.) I rekon ill put in a mild cam with better springs, what carbie/s should i put on, i still want ok fuel economy, but a bit more poke than a standard one, what about a single 40mm or 45mm?

Twin hitachi SUs will give reasonable go, without having the crippling fuel consumption of webber/dellorto's.

yeah, but i love that weber sound (dont we all) :P What sort of economy would i get with 40mm webers/dellortos with small chokes and manifold?, only giving it a squirt here and there

dcoe webbers and economy should not be used in the same sentence it's almost like a double negative.

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gold!!!