Is the engine the 1.6xu ? The problem with most Peugeot engines is that they are usually mounted at an angle. That can cause space problems when you try and fit it longitudinally. You would have to mount it so that the crank is sat in the centre of the engine bay which would cause problems at the top as the head would be to far over. Also I'm not sure what gearbox you would use as Peugeot don't really do any rear wheel drive cars.
If its the TU series engine there won't be the same problem as they are mounted upright but you will still have the same issues with the gearbox.
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