Hi Jim,
 
I have some interest in this topic as we have a SIII 199 with a Holden 202. These days it's mainly the "hobby farm" truck but I'd still like to make it more efficient.
 
A Fairey overdrive would be a good starting point but they're scarce in good conditions and apparently a bit fragile with a more powerful engine in front of them. A better way to raise the gearing is a high-speed transfer case conversion. Also scarce second-hand but a very good mod for a Holden-engined Series truck. They raise high range by 28% but leave low range gearing as standard. I very luckily found one going second-hand with very few km on it a few years ago. (The owner had tried it in a 2.25L 109 wagon but found the engine couldn't pull the high gearing.)
 
I have an idea to improve the efficiency of the Red Motor that I'd like to try some time: The early EA Falcons ('88 - '90ish?) could be bought with a 3.2L version of the 'new' OHC six. These had CFI (Centrepoint(?) Fuel Injection). 
 
I reckon the complete CFI system from one of these could be adapted to a red motor without too much trouble. The system from an EA 3.2 manual should be quite well suited to a 202, and probably not too big for a 186. So, if any AULROers happen to have a dead EA 3.2 with it's CFI system intact, please let me know.
 
Regarding the diesel route, a Tdi would be ideal but as you say, not cheap. The Pommie magazines have often referred to fitting the Perkins Prima 2.0L turbo-diesel (from a UK-market Morris/Austin Maestro or similar) to Series vehicles with satisfactory results (especially in 88s) but I don't suppose they would be easy to find around here. 
 
Did any of the later 2.5L five-bearing land Rover diesels ever come to Oz? One of those should be economical, if not overly powerful. The UK market ones were mildly turboed in the mid '80s, I believe.
 
Interesting topic - let us know what you decide.
				
			 
			
		 
			
				
			
			
				Ian &
Leo - SIII 109/GMH3.3
Daphne I - '97 Disco 300Tdi Manual
Daphne II - '03 Disco Td5 Auto
			
			
		 
	
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