Basically I want a cheap and reliable swap for the next 2-3 years while I save for something bigger like s52+tranny+lsd+etc swap.
I really meant m42, because I know it's bolt-on, but m20's more powerful and I always found that parts for the m20 are slightly cheaper than for the m42. But you're probably right about all the extra costing me quite something... So e36 m42 it is!

I'm budgeting around $2k for the engine, rebuild & some mods while it's out and I'd also go for a new tranny or a rebuild of mine if the budget allows. Feasible for $2k?