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That was a great article.Clearly shows the potential of the ecotec at extremes.I see it as saying 250 hp is easily attainable for the average guy but specifically for drag racing purposes.I'm not sure it indicates that 250HP would be reliable in a road/offroad application such as a buggy though.
WHat kind of rear suspension travel are you wanting? What rear track width are you wishing to have? What is the flange to flange dimension? The reason I ask these things is because that tranny looks like it is pretty wide from output flange /output flange. You might not be able to get much travel.
I'm not wanting to be a bit negative but it appears like the cars you referenced are only able to have 10-12" maybe of travel. A bit shy for what I'd like to see even for a mid travel car.But if that's enough for your intended use I say go for it.