it is definately somethign to consider. possibly a serious weight break for running the 6banger would work too.
one thing i would want to watch out for is a car like a TTA, the turbo'ed series1 3.8 is a powerful force and can handle plenty of boost to go fast. too big a weight break or power adder concession would swing this into a one car class very quickly.
as far as displacement limits in pure street, i woudl look around the 406 mark. rebuilt 400 gen1 sbc's are a very common hot rod swap. there are at least four members i can think of off the top of my head that have done it, and several more with 383 gen1 sbc's.
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