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I think internals would probably be last thing if he's doing the swap now...
Basics like FMIC, fule pump, etc... you can boost the redtop quite a bit before you have to build up the internals (not that doing so isn't important too!), I just think it's a lot of $ to plunk down initially (timers, boost controllers etc) before you even start on internals.
As far as legality, it's a state issue, so check ordinances in your area. If you're in cali, you're basically SOL... but yes, a s13 redtop will fit in the s14 chassis (they're basically the same engine cept for a ball bearing turbo and some other small things... nothing the $1-2k cheaper redtop couldn't be upgraded with for much less).
Check with the guys at unstable hybrids, srswap.com, etc etc etc... most the questions you have/will have can be answered on FAQ's on those sites... 240sx.org as well. Best of luck!
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