All very doable, but you'll need to be aware of several things.
The standard engine may have been a 4 or 6 cylinder petrol, or even a V8, but I doubt someone would pull a 3.5 V8 to stick a 202 in it...
VicRoads will require it t be engineered yes, but this isn't as difficult as you may think if you get it right from the start. Given that standard items like a demister and 2 speed wipers are also required when engineering a vehicle in Victoria, the Series 3 is a good start as it meets all these other bits and pieces you will need to do already.
Speak to an Engineer BEFORE starting anything, or even buying an engine. Although I doubt there'd be too many combinations an Engineer wouldn't approve due to the series having a full chassis, knowing what you can - and more importantly can't do, is the best place to start.
There are a couple of places in Bendigo you could go chat to, here's a full list from the VicRoads website - https://www.vicroads.vic.gov.au/~/me...tion.pdf?la=en
I've found that if you cross your T's and dot your I's then VicRoads aren't that bad to deal with - finding out what you need to do in the first place is usually the hardest bit.
Other things to look out for are the standard brakes - these may not be up to the task when engineering is concerned as it will need to pass a brake test. If it has the bigger 3" drums up front (that the 6 and 8 cylinder models came with) then you may get away with this if they are in impeccable working order or else a disk brake conversion may be needed - there are several good kits available from manufactures both local and overseas, but these aren't cheap.
Speaking of money, be realistic about the cost of this as well. While you think a few grand might get you there, my guess is that you will need at least $10K to do this properly and legally if you spin the spanners yourself, add 5 to 8K if you need to pay someone to make up new engine mounts, fabricate other things, etc. Not saying you shouldn't - I think it would be a ripper project, but just be aware this isn't a cheap excersize - I'm rebuilding a series 3 at the moment and the complete rolling chassis with new disk brakes up front owes me over $10K and I haven't rebuilt the engine yet. Don't be put off by the cost compared to the value of the vehicle, that's not how it works - if you love it and plan on keeping it, the money isn't an issue (unless you don't have it to start with of course) but if you have the means, go for it.
Lastly the only other thing I can think of is that the axles and other driveline parts will be stretched closer to their limits - some parts in the driveline aren't the strongest in the world, but if you're careful, it will be fine.
Choice of engine is a big question on its own - the 200 and 300TDi engines would work well, but are getting long in the tooth and expensive to rebuild, so if you're getting it engineered anyway, why not go for something more modern? A small Izusu, etc would be a good choice as you've mentioned.
Whatever you do, make sure you start a thread on it and take plenty of pics - a project like this will generate much interest around here.
All the best with it.


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