Riv,
You realise, of course, you're going to get a million replies on this one, and cause a huge debate. What have you done!?
Are you planning to buy an engine and just fit it in? Or are you planning to tweak it before hand? I ask this, because that influences your decision.
For example, the Toyota 2ZZGE (celica donk) makes 140-odd kW from 1.8L from the factory. Not bad. But it does this with half reasonable intake & exhaust manifolds + a high speed cam of 292 degrees of duration. It's basically a fit & forget engine. All the basic hot-rodding tweaks are done at the factory!
Other engines, featuring no VVT and more economical headers, might make more grunt after tweaking, but less in stock form. Depends on what you plan to do.
Also, would you consider some serious chassis mods to make a different type of engine fit? If so, perhaps the sooby EJ20? I think this engine has advantages other 2.0's can't offer. It's very short & very low, offering superb weight distribution - excellent for the twisty bits. It's all alloy, and there's truck loads of bits for them. But the chassis would definitely need some serious massaging...
Obviously it also depends on how much money you're willing to spend.
In my experience, Honda's cost a small fortune for repairs. Better sell those kidneys! Good engines, but pricey.
As for a basic in-line 4 to build up, I think that's a bit of tricky one. SR20's seem to get their hi-po image from their turbo efforts. In N/A form they don't seem to set the world alight. And they've got those silly rockers in the valve train - if one of those lets go...
Don't get me wrong, they're still a respectable motor, and definitely one of, if not THE 4 pot donk for turbo apps. I'm just not sure that the same applies for N/A.
The Toyo 3SGE is the obvious rival, but it's cast iron, and lacking in valve area. Nothing terribly special.
So, recommendations:
Chassis & engine work: Subaru EJ20.
Engine work: Your guess is as good as mine.
No engine work, high budget: Honda K20C.
No engine work, low budget: Toyota 2ZZGE.
Cheers,
Beef.