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I think the 5g DX/LX sedan should work great if you use a stock engine. They're subject to the same 2400lb minimum weight as the DX hatchbacks and coupes so I don't see any disadvantage. Going with a hybrid engine and racing in H1 just might get you owned, though.
A good cage builder should be able to take care of chassis bracing for you. It seems like the Honda Challenge is very loose about what they'll let you do with a cage.
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