Whether you want to go with the seam welding and cage is dependant largely on whether you choose to, and whether you want to try and use it on the track - a stock 1UZ will go well, but won't rapidly twist the car into a corkscrew with street driving. W58 amd Hilux diff should do the job alright. Personally, Id use R33 Skyline brakes front and rear for reasonable stopping power on a modest budget. I'd also look at converting the front steering to power rack+pinion, not only for improved steering, bult you may also have clearance issues with the steering box.
With the engine, if you are planning to keep it pretty much stock, I'd be using a later (VVTi) 1UZ, or a 3UZ, to give you a bit extra grunt. Get some extractors made up, and a decent exhaust, and try to make it sound half decent, too.
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