Unless something in the engine is broken, then you have a usable engine once rebuilt.
Emissions at IVA will be easy, no cat etc.
When you rebuild go for larger pistons but don't worry about going 2.1.
Use the best rods you can get, 7200 with the later injection rods (F on the shaft) or go for Cosworth rods and forged pistons to fit, 8000+rpm.
Injection head is the best "out of the box" head to fit, bigger inlet valves in this head would help.
Cam choice is huge but a 285 duration with lots of lift (no more than 12.5mm for reliability) will give good torque.
ARP Main and Rod bolts are recommended if you go for high rpm.
Increase compression ratio to 10:1 to make the cam work but still run on 95 unleaded.
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