That sounds like a very ambitious project  :peek:    Most of the engines you're thinking about will have problems in the width department.   How about the ever ready 20V GTI engine and 4 motion drive train or as mentioned above, a VX220 set up, thats not far off 300bhp but light, bhp per ton would be good. Gear linkage is going to be a problem whatever you fit.

Fairly easy to sort the gear linkage out, there's a company in Sheffield that will make custom control cables up with whatever ends you want, it would just be a big loop out the front of the gear linkage box down the side of the car into the back of the gearbox like normal.

What about an Impreza 2.5 turbo? Wouldn't know about making it 2WD only though...