You might want to look into an FE3 engine. I am told it is a much easier swap than one of the newer engines, and they are built strong as hell.
Personally I think it would be easier to just play with the 1.6 though. With the right turbo (TD04HL) you can get 280HP, with boost starting to build at <2000RPM, and full boost at <3000RPM, and massive amounts of midrange, which is what you need for good performance on the street.
This is the exact setup I am going for, with a JDM B6T(only for the stronger rods and bignose crank), forged 9:1 pistons, Megasquirt ECU and a strengthened stock gearbox with an LSD. I had a drive in a fwd 323 built by my tuner to these exact specs, and it was just amazing. I believe he managed a low 13sec pass on street tyres. Obviously you need to do all the rest of the stuff like intercooler, fuel delivery, exhaust etc as well.
Despite their small size, these B6T engines are quite torquey, and it would be a lot less hassle to work with the stock engine and push it a bit harder, than it would be to transplant a new one and then still have to go through the trouble of turbocharging it which would require most of the same work anyway(ECU, Pistons, potentially rods, fuel system, manifolds, etc)
The added drivetrain shock of the bigger engine would probably just result in more broken gearboxes and smokey tires too.