Why not go for it!!!

However a few points to ponder first:

The manifolds are on opposite sides to the 4BD1 - it will make exhaust plumbing MUCH harder.

Check the height difference between the engines (4HE1 is OHC)

Which t-case will you use. I believe John (Bush65) said that some of the boxes may be too bulky to adapt to an LT230 easily (front output and/or propshaft will foul (unless you run a divorced case).