[sammyg2]

I am very skeptical that a 200 hp type 4 will last on the street for all that long. Maybe it can be done, but no way can it be done for the price of a rebuilt 350 chevy. I woult love to see a 200 hp type 4 (on a dyno) that can be built for less than $4500. I don't think it can be done and expect it to stay together for more than several thousand miles (I am talking N/A here, no turbos).
a hot cam, rollers (?), webers, pistons, and port and polish on the heads you will be around 125 to 140 hp tops. That is assuming your headers and a free flow exhaust work well. Hard to do without many hours on a dyno. Do not use a 009 distributor. They do not perform as well as a 050 on type 4s. Plus, they are only around $45 new if you shop around, not $50 to $75 used. A new 050 is only around $58 new from CB performance.

As far as the weight, my conversion only added about 225 lbs to the weight of the car. If I would have installed aluminum heads that number would drop even more, probably down to around 150. Big deal.
Water weighs about 8 lbs per gallon. So the entire contents of my cooling system weighed about 12 lbs. Again, big deal. I eat lunches that weigh more than that :-)
Lets figure out the power to weight ratios:
2425 lb car with 325 hp. (the car i sold).
2200 lb car with 200 hp. (your car).
Mine has a P/W ratio of 7.46
Yours will have a P/W ratio of 11.
Your numbers don't add up.

A v-8 914 is not for everyone. The massive torque changes the characteristics of the car. They are a blast, but you cannot run them full throttle for any period of time like a stock type 4. You simply run out of road too quickly.
Before my conversion car I drove a 914 with a turbocharged 2 liter. That car was a real kick. No where near the hp or torque of the v8, but still very fun to drive. It's Like comparing apples to oranges.