Go the S15 SR20DE VVT (Japanese lowspec 200sx).

Easy obtainable for under $1200,

96kW at the wheels.

Interesting idea! sounds close to my dream engine for a datsun ( vtec honda) Not sure if i am but i think the red thing on the left of the motor in the pic is an engine mount if so where do you attach it in an RWD converion???????
pic of SR20

hey craig found the perfect already built engine for you Tomei SR20
Can take note of the specs its running they are making 265PS @ 7500 and 27kgm at 5500 Shame about the price tag around $17k then you got clutch and pressure plate to worrie about. So say a nice round $20k LOL
I also notice with the 180PS version they run Sr16VE pistons to bring the compresion up
I recon quad throtle bodies cams and a bit of head work should see at least 200 crank hp Good luck with it. $5k budget is for engine build only?/ or injection ect as well??
Cheers Andrew

Dattodude, where do you suggest i source an S15 engine from?

Craig,

Found a set of injection perfection throttle bodies on a manifold to suit SR20DE for sale. Slightly used, $900, well below the $2700 buy price.

With the sr20ve, i wouldn't worry to much about the solenoid, it would be easy enough to knock up a small box (similar to what mini's do when running side draughts)to clear the solenoid, assuming firwall mods are allowed, if not they don't stick out a terrible amount so probably wouldn't be to bad. the biggest issue i think would be a suitable gearbox with custom housing, could be expensive. I also got the redline wrong sr20ve redline at 7800 or 7600 not 8200 like the sr16ve but they will still happily rev to 8 with stock valve gear. For more info on sr20ve chesk out www.sr20forum.com they have a whole section on sr20ve as well as hot na sr20 builds. worth a look

Cheers
Nick