I'm in the process of re-building my 2.5 subaru engine that's been in my sand rail since 1996. The only reason I'm re-building it is because my frame broke and crushed the oil filter housing breaking off pieces of the aluminum case. This has probably been the greatest engine I've ever used in a dune buggy.
Back in 1996, Sand Sports Magazine did a 4 or 5 page spread dealing with the process of my installation. VW's ruled the sand dunes for years and it was very unusual to have alternative power.
About 3 or 4 months after the article was published, a load of Subaru builders popped up selling Subaru engines. Although I wasn't the first to do this, I believe I started the Subaru revolution as a vast majority of the early builders knew who I was and often times, called me for advice or information.
The reason I state that I wasn't the first was becasue Kennedy already had an adapter plate to mate the Subaru to a VW transaxle. I have an 091 Bus transaxle and the adapter plate and flywheel work perfectly. (according to Kennedy, the plate was adapted because some people were installing Subaru engines into VW busses.)
The biggest problem is mounting and plumbing a radiator withing the limited confines of a Speedster or Spyder. The next problem arises in your choice of electronics. In my case, I used an aftermarket computer and injectors along with an aftermarket turbo and intercooler. Finally, fabricating an exhaust will round up the major hurdles.
In a Speedster or Spyder, a stock Subaru propels the car VERY nicely and doesn't generate the heat that a turbo engine produces.
Regarding your trans, a 3.44 or 3.88 Ring and Pinion works nicely. You can do some gear replacement to bring the gears closer but a stock 4th works well. Go for welded gears, a 4 spyder differential, heavy duty side plates and you're good to go.
I'm the Administrator of www.spyderclub.com and many of our members have Subaru engines in the Spyders. There are also several members on this board that have Subaru powered Speedsters.
It's a great choice