Just a thought or two here. Aren't you going to lose rpm (and hence speed) when you install a diesel? There aren't many diesels that'll turn over 3000 rpm. I've seen Perkins mentioned and from my experience with tractors they consume lots of fuel.
With the motor stuffed under your left armpit that diesel knock would be unreal and I'm sure the exhaust smoke would find a few cracks to invade the interior.
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