Yeah, for the money your WASTING on the block, you might as well WASTE some more and get a GT series turbine. Like a GT30R or similar. I would atleast make sure I was getting a full BB turbo.
Honestly though, If I was only looking for 400 at the wheels, I wouldn't even touch the short block. A good 1.2mm HG like you said and a really good port/polish on the head. That with a set of 256 or 264 dur cams, the right turbo and Fuel/Ignition tuning will net you huge results. There is alot of power to be made in the RB20 head. I was running 248 dur cams (stock 240), a custom head job, 2mm HG, HKS mani, TO4E, External wastegate(internal is garbage) set to 28 psi and put down 498 at the wheels. Good enough to take a 3000lb R32 down the 1/4 in 11.9
Your going with a ton of overkill bro. I'd be looking at 700whp if I had that much invested.
The RB20 stock piston/rod combo will hold a ton of pressure, if you can eliminate detonation she'll run forever. I went through 5 or 6 RB20's trying different things. Mostly cause I get them for 200 bucks, and its fun to blow them up.
One thing I would add to your list, as a must have item, is a MSD or similar Knock Sensor. That thing saved me atleast 45 times, it will really help during your initial test and tune sessions as well.
Shoot me an email or whatever if you wanna toss around some idea's. If it's one thing I know, its RB20's.
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Later OnWD