4 cyl Fox LS1 swap.
#2
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I was actually thinking about it for a while. The only thing is you have to factor the expense for the 8.8 and associated suspension, the fuel pump and lines, the transmission cross-member (if you plan on using the existing 5.0 unit), and a couple of other items. If you didn't mind those cost, it would probably be a good idea. I picture a low-mileage four-banger that grandma drove around and treated real nice and only has like 35,000 miles on it. If you could find one real cheap that would be the ticket for a nice street car. I did a quick search and couldn't really find one in my area for less than $1,500 and they were all high-mileage beaters. Happy hunting!
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Brakes and the rear end (4cyl. has the 7.5" rear) are about it. Everything else will get replaced as part of the swap. Since you're doing the brakes anyway, might as well upgrade to 5-lug. Get the whole setup out of a 94/95 car (rear end, front knuckles, etc.) If you want bigger brakes, you can use the Cobra 13 inch pieces too or the std. 1999+ calipers and brackets work too. Nice thing about (most) Ford suspension components is they're all pretty much interchangeable. Just gotta watch out for differences in lengths and angles here and there (ie. 96+ stuff has a wider track width)
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definately do the 5 lug swap imo. you're gonna want to do an 8.8 if you're staying under 1200hp, but it's gotta be built right if you're going over 500hp. mines got 9" ends, c-clip elims, welded axle tubes, 33 spline axles & a girdle. i picked mine up from a turbo drag radial guy, so it was built very tough, but you should consider doing the same additions with your choice of axle splines. if i could do it again, i would get a locker. the rearend isn't in the car yet, but will be soon and i'm a bit nervous about running a spool on the street, expecially with wide tires. if i don't like it, i'll swap it out, but they're like $500-$600 from what i've seen. i would say go with 31 spline axles at least, this will leave room to grow and be a + selling point if you decide to get out of it. good luck!