20V on an AE86 would be my choice. but the initial buy might be a little on the expensive side. i know you can get it cheaper now like $850 CAD but it's not complete. the wiring harness is often times cut and it's w/o an ecu. so if you decide to go with the 20V make sure you spend the money and buy a complete engine with an uncut wiring and an ecu. a friend of mine has this set up on his '85 GT-S and they're rallying it hard. very strong car in it's class. you have to punch out your firewall for the distributor to fit. but there is a kit that u can buy so u can adapt it to run from the front. it's a lot of money though, i don't think it's worth buying. u have to custom make the pipes for your radiator. and if decide to get a silvertop20V, you have to customize your intake also. but if u get the blacktop20V, u don't have to do anything except take off the intake box and put some trumphets on it. like on the carbs. oh, you have to buy a high comp (for high psi) fuel pump, if i'm not mistaken at least 90psi. this is so the vvt will work properly. aside from that everything else on your AE86 will work fine. (ie. axles, transmission, differential). in my opinion this is the best NA set-up for u'r car. but then that depends on the purpose of u'r car, like if it's for drag maybe u'r better of with forced-fed motor. (ie. 4AGZE, 3SGTE, 3TGTE, turbo'd 16V 4AG or go crazy like 1JZ, haha!)
GOODLUCK on the project! and post some pics!