Since evildky hasn't posted yet, I'll give you my advice. He can correct me later if I am wrong anywhere, I guess.
1) The engine will bolt directly in. That is, with the turbo crossmember. Take the whole engine/crossmember assembly and swap it over. Take the intake piping, the downpipes too since they are different. Don't forget the ECU. Next, the transmission... if they are both manual, then swapping the transmission is optional. I've heard a lot about the NA transmissions being stronger than the T5 transmissions. It boils down to it being a "non-world class" transmission, whatever that means mechanically. Anyway, people tear through them pretty quick with higher power, so that's up to you. The turbo automatic is stronger than the NA automatic. If one is manual and the other is auto, I'd personally put the manual in, but that's just my preference.
2) Polyurethane bushing are ****ing awesome. Not much more needs to be said about that. For springs I would choose Z3Rs and Koni Yellows. Suspension Techniques offers pretty good springs (if you can find them), and Tokico has some okay dampers in the Blues and Illuminas. Illuminas are better than the Blues, but require the 87+ turbo strut assemblies to fit in the tube if memory serves. Tokico springs are good riding springs and have a nice stance if you don't mind the rake. The Tokico springs and some Blues would be a good setup for a daily driver. Failing that, springs from an 88SS or some OEM replacement turbo springs would probably do nicely for near stock power.Z3Rs
http://www.z31parts.com/suspensionparts.htmlPoly http://www.thezstore.com/page/...100ZXMore Poly
http://www.z31parts.com/polyparts.htmlReguardless of what you do with the springs and dampers, I'd get poly. They make a world of difference in the feel of the car. Even on cars without worn out stock bushings, like a 150k mile 86 would have.
3) What do do while it's out... that depends on what you want to eventually do with it. I feel that a rebuild isn't what you are looking for, but I personally would replace the piston rings and all the gaskets. Beyond that, every filter you can get your hands on. I'd replace the CHTS and it's sub-harness, and while doing that; cam seals, water pump, timing belt and tensioners. Then I'd change out every vacuum line in the car, and all the power steering lines and boots that might be leaking. Check the steering rack too. If you feel that the alternator, power steering pump, and AC compressor may need to be replaced soon, I'd do that right then. It's also a good time to replace the accessory belts.
Performance wise, I think that a mild port and polish on the heads would be fun and maybe some cams, but that's between you, your plans, and your wallet. But I would definitely intercool the car. It's just a smart thing to do in my opinion. But again up you you entirely. And I'd ditch the stock clutch fan for an e-fan. It's worth it. And last... clean the entire engine and engine bay. But I'm pretty anal when it comes to engine bay grease.
4) What else do you need to know? Well... all I can think of is that the 86 slicktops aren't very common.
5) Can't help you there, I'm in Florida. If you needed a shop in Tampa or Orlando, then I might be able to help you out. You might want to ask a few car savvy friends to help you out and teach you the ropes. Doing it yourself will be a lot more fun, extremely educational, and costs a pretty penny less. And a pretty penny in common labor costs can buy a boatload of ****.