I believe your frame rails are 29" inside (it is hard to measure with motor, etc. in the way) and it needs to squeeze into that, with room for mounts. Then you also have to consider where the exhaust is going to run. I have seen some pretty amazing exhaust modifications on here. You can mount up almost anything to a transfer case.
Almost any thing you put in there is going to be heavier than the 1.6L. AND WILL BE A PAIN FITTING, WIRING, COUPLING, AND PLUMBING. Then you will start breaking things because you have more power and weight, and have replace the running gear.
If you get your replacement motor from a local wrecking yard, you may get the small parts that you forgot cheaper from them. If buying the neighbors motor and trany, try to get the whole rig. Small parts can double your cost if you have to buy them new from manufacture.
Or, dream it up and take your ride to a shop and say "Make it so..."