As speedlaw said a 16v head wont fit the bottom end of most of the 8v engines. The holes for water/oil will not line up proper.
I have been looking round for other methods of increased power and one of the cheapest ive found so far is this..
get a m45 eaton supercharger which is available for around 100 pounds, get a custom made pipe to come off that to attatch to the TB.
Of course mounting it to the engine will be the b***h, and also gasket will still be needed to lower compression ratio enough.
That supercharger is off the mini cooper S and theres lots floating about. I will also need an intercooler(new front bumper please!), and some nice hosing to go around the engine. Another difficult part is calculating the rpms for the supercharger. Its a direct drive from the engine so depending on the size of the minis crank pulley and vw 1.4 aex crank pulley adjustments may have to be made to the charger pulley.
As for mounting i was thinking for the front below the ex manifold.
I dont know about drive. Maybe a custom crank pulley with extra belt drive. I seen this on ice cream vans, though dont know if theres space in the car.

Speedlaw as you are the ECU wizz can i ask you-
Say fabricated this set up and the charger was mounted ok and it was boosting about 6-8 psi. If nothing was done to the ECU could you guess how the engine would react? I mean, If i did strap the S/C to the engine and all was well, would i be able to drive it to get it chipped up properly???
Im guessing the total cost of this job (including a lot of time n effort) would be about £6-800.
As for power i have no idea what the engine would produce. Speedlaw have you got any idea how much power the stock internals of this engine can take?? (AEX)
Safe B