You would also be wise to change the rear end.
But, let's start at the top. Avoid the used engines from Japan. They are mostly junk. They have fairly low miles, but were never maintained in the first place, and more than likely have never even had an oil change. I have dealt with several of these, and am yet to see a good engine. I finally spoke with a gentleman in Japan about it, and he explained that due to extreme laws there, most vehicles are scrapped in 5 years or less (thus, the abundance of used, low mileage engines). The owners know this will be the future of their vehicle, and see maintenance as a waste of money. They are driven hard, and maintained poorly. You would do better with a used rental car engine.
As far as legality, I would love it if you could show me where it says that you could install a Ford engine into a 1989 Nissan, legally. You can't. It would have to be re-registered as a kit car (driven less than 2500 miles anually), and it wouldn't qualify for that status.
Your best bet is to find a rebuilt replacement engine and swap out yours. For added power, there are lots of options available, including nitrous or forced induction. This would be the easiest, most cost effective, legal choice.
Take care,
-Chris
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