The 2.7 liter engines are mag case but most are the much improved 7R case. They are the best of the bad cases and are usually the foundation for the RS and RSR clone cars. These can be built safely but usually at a premium. In stock form, the 2.7 is just 150-170 hp brand new. Frankly, Raby can build you a Type IV in that power range that runs great, lives a respectable lifespan (don't know how long, jack, please fill in), and has great customer service. It will require regular maintenance, get good at valve adjustments. If what I read on this site is correct, plan on adjusting valves every 3,000 miles. On a P-car motor, you adjust them on 30,000 mile intervals (source- Bently Service Manual). The adjustment will cost you more $$.
Everything on a P-car motor costs more money. But they run robustly for a long time. The engine currently in my spyder will be pulled out this fall for overhaul. This is the motor I drove to the James Dean thing. Its an 82 3.0 with 149,000 on the clock. Never opened up, not even a valve job. This motor, stock is 180 hp. Pelican Forum shows dyno results with PMO carbs and headers at a 20 hp improvement. My motor is a little soft, I'd say its 170-180 tops. But it did that for 149,000 miles! I love these motors.
Let's explore another avenue. Why not a subie motor? Leave it rear engined, put the radiator up front (weight compensation). Should handle well, go like STINK, cheap to build, cheap to buy, cheap to maintain, good gas mileage. Why not? Frankly, a well built turbo subie motor would eat my P-car engine for LUNCH, and it would do it for 100,000 miles. Right now, I hope someone is looking at a munched WRX STI and going Hmm.....
You can fit a 911 engine in your car. I love 911 engines and would put one in my speedstah (if I had a speedstah). But we all know I'm a bubble off plum... In short, review all your options, think hard and dont be afraid to do something that no one else has done. I've put Chevy 350's in Jaguars, a rotary in a Fiat X19 and now the P-car motor in a spyder. Have fun, build what you love and remember that eccentric people make the world more interesting place!! angela