The problem is, it's hard to assess what is or isn't damaged w/o actually taking the engine apart and looking at it. It could be just (and is likely at least) the HG, or a warped block or head, or it could be a cracked block or head, or any and every one of them

also other things could be damaged as a result, too. Since it sploded while drifting, the pistons, rings, valves, cylinders, and bearings might have problems, too. MIGHT. Only a worst case scenario. Point is, can't really tell w/o cracking the engine open. A simple thing to do is run a compression test on the cylinders. That may at least give you an idea of what might be blown, and where, without having to tear it in half.
You may want to cart the block and head to a machine shop to have it checked for warpage cracks etc, and if need be, decked machined w/e. If it's too hosed, might want to find a "new" KA - since you're willing to rebuild anyways, you can buy one in less than perfect condition as long as it's not hosed, too.

I might even have a KA available in a few weeks...
Cheapest I've seen a full rebuild kit for a KA was around $500. All gaskets n seals + HG, piston rings, valve seals, oil pump / front cover, the works. Don't know if it comes with head bolts - you won't want to re-use the old ones - and you'll probably want head studs anyways of you plan to go turbo. If you want to beef it up, mostly oem gaskets are fine I think, someone other than me should answer the HG question, def get head / cap / rod studs, forged internals are nice but close ish to a grand once you throw in the bearings and rings. You can never beat a car with too much maintenance

Not sure
exactly what is needed to support 400HP on a KA, but I feel that's at least a good start, give or take.
In the meantime, def read the FSM, check this out
http://www.240sxtech.com/, and don't underestimate search. The in-site search can be kinda dumb, but I've found that you can trick google into "searching" NICO by adding the word "NICO" to the search. It works fairly well.
Let us know if you have any more ?'s
