Agreed, the 2400cc 22R (or turbo 22R-TE) would give him more grunt than an NA 1600cc 4A-GE.
A supercharged 4A-GZE would have similar grunt to the 22R but has the hassle of swapping engines.
A 2000cc 3S-GTE has the most grunt but of course also has the most complications. If I remember correctly, the US never got the ST140 Corona that you need to get most parts from (Australian wrecking yards are littered with the ST140).
The turbo 22R-T is probably the simplest performance upgrade (same mounts, gearbox, etc) but the stock 22R-T only has a small amount of boost (meant to be a truck motor, not a sports car motor).
If you want to go whole hog, the Lexus 1UZ V8 fits in.
Clearance for the exhaust manifold is a pain.
You will need to make custom engine mounts but that's not hard.
Not sure if the transmission tunnel is wide enough for the Lexus bellhousing.
I was halfway through this with a TA45 but stopped when it got complicated.
http://ourworld.compuserve.com/homepages/stepho/mods.htm#CarinaV8
(web page is down at the moment but will come up again in a few days)
- Stepho