From what I have experienced and heard the extended warranties are worth less. Even if you get them to cover that old of a car with the engine swap they are a rip. Lets say you need a new tranny, they don't have to pay for a rebuild but rather can pick a used tranny from some junkyard to replace it as long as it works. Then if that one clunks out in a few months, you are back to square one.
If I where you I would just stick with a 7mgte if you are going to have to pay for the labor for the swap. To do the 1jz you are still going to need to modify the wiring harness and parts are a little more difficult to get with the engine not being used in the US.
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