It's been a long while since i've posted in this thread, but here are a couple of photos to show my progress so far and my new engine:
The new engine is a 1.8l Zetec Silvertop. Which cost me a grand total of £40

. It has come with a chopped down sump and oil pickup pipe, meaning it's one less job for me to do.
My plan is to run it on ZX9R carbs with megajolt. I'll be making my own inlet and exhaust manifold to go with it, as well as having the engine 25mm further forward to accommodate the thermostat housing.