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Like RonA, I'd be afraid that the oil pan will be scraping the ground while the valve cover is flush with the roof. The Z has a long nose and I don't think length would be as big of an issue. I remember someone was putting a GM Vortec 6 cylinder (forget what it's called now) into a S30 and if I remember right it stuck way above the hood and the oil pan was below the crossmember.

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Good luck! You might be able to fit a 4BT but diesels are BIG heavy engines. I have also dreamed of a diesel classic but I was going to use an old caddy or  dodge. Your going to have a harder time than me an my dream for a V12!

 

You might be better off with a late 260/280. They use thicker gauge steel and will handle the torque better.

Also a heavy engine is going to destroy the weight distribution and require some front suspension upgrades. 

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