Nice idea...you're headed on the right track. Be careful of the 1.6's because they change the geometry of your valve train and will wipe out valve guides and bang valves against pistons if you don't spend the time to check clearance and triple check pushrod lengths, etc. Good geometry all the way around is free horsepower and keeps you running a lot smoother as far as maintnance and breakdown. I don't see why your ideas wouldn't work to achieve your goal, just worry about all the geometry first. You're gonna have some fun.