hello mate wot 8v block u starting with??
if u got a digi then its as easy as can be,as long as u have the mk3 block and dizzy, its simply a case of replacing the block and dizzy and then using the reat of the mk 2 stuff, i.e head gear box etc, ive found the 2e block sits abt 16mm higher so u cant use the top cam cover, also if u have a stainless steel exhaust u may foul on the underside of the body work, i havent though
as for head gasket id use the metal one, i used standard one and ripped it apart after 40miles, changed for matal one and now havent had any problems there
also might be worth using an up rated clutch kit, i havent and sometimes the clutch stinks if i pull away to quick, will defo be using a up rated one next time
hope this helps as im still half cut from last night
rik