Update: on 05-14-08
Well today we remove the stock 1.6L turbo engine and transmission. Little said note both engine and chassic have 87k miles. My cam had low battery so i didn't take alot of pictures of the removel

There's the reason for the build. The stock transmission will never handle high horsepower and lucky us the diff gave out. We opened up the stock tranny to find that the planetary gears inside the diff and the inner ring gear didn't play nice and broke some teeth. Here's couple of pictures of the damaged

mmmmmm metal shavings

We also took apart the j-spec 1.8L turbo engine to get it ready for the machine shop. We found #1 piston exhaust side melted alittle. Of course we never babied the engine. Cylinder walls look good but we'll see what the machine shop says.

New Ford Racing crank, ARP head stubs, Gates Performance Blue Timing Belt, and SSR cam gears came in today. Sorry no picture of them, cam died. So the block, crank, pistons, rods, flywheel and all the bearings and bolts are going to the machine shop tomorrow. They are going to put the bottom half together. Still waiting for CorkSport Performance cylinder head filled w/ over sized valves, turbo cams, springs, and everything put together ready to bolt on. Will keep you all up dated.