MY 2.0L or V8 conversion, Help me decide Options

[DougC]

I have been planning a conversion (already have the engine) but haven't started the process of buying parts yet. I haven't even pulled the 2.0L engine out of the rust free car I bought a couple of months ago. I was told by the PO that when he got the car 3 years ago it already had 9.5:1 Mahle pistons and a hotter cam by Elgine ("just about right for the street"). He then "rebuilt" the engine but failed to have the case matched and align bored which he believes is the reason for an oil leak coming from the bellhousing area. During the rebuild of the engine (which only has a couple of AX's and 1 track day) all the seals were replaced, heads were done - valve job done & cylinders honed, new rings, bearings, etc. It reportedly dynoed at 130hp before his freshen up "rebuild". He did not replace cylinders or pistons and case was not matched or align bored. I got it started before pulling the fuel cell and it sounded pretty nice, so I'm kinda thinking about just keeping it instead of doing the V8 (undecided). To keep it what would need to be done besides the align boring and resealing, and apprx how much would that cost? Would it be wise to spend the extra money on new cylinders & pistons while it's out and again what kind of money am I looking at? I would probably be going to spend atleast $3500 on conversion parts when it's all said and done..would a rebuild of the 2.0L be much less? Things that I need to consider are: a)I want AC for the street - is that a big advantage for an old V8? (IMG:style_emoticons/default/cool.gif)I want to use the car for track days and maybe racing which is probably a nod for the 2.0L c) Money for the conversion vs rebuild.
BTW, the car will primarely be a daily driver and currently has dual 44mm webers & a header. Please submit experiences and opinions - much appreciated!

Doug C