Assuming the modified 1.6 will run reasonably well in its present  form, 
the most likely problem you may encounter is the higher compression ratio,  
which may not be that much higher at all, and you can compensate for that with 
 lower boost and the water injection.  
I'd be concerned about taking care of other possible problems, like the  
clutch and cooling.  
Do you have a stonger clutch in the present car?  Did it run cool  enough 
before it failed?  
Were there any problems with the transmission?  ...Those are the  things 
I'd want to sort out, especially if this is going to be a warm-garage  winter 
project.
 
Jerry aka LGO
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