We have a few guys over at IsuzuPup.com who have put the C223 into later model Isuzu trucks (and Rodeos, and Amigos). The motor only makes 58 hp (give or take, depending on the year), so weight is a concern. If you want 4wd, you will be very...challenged...on the highway because of low gearing and the 4,250 RPM redline for this motor. There were S10's with the C223 motor, but they had a unique bellhousing to mate the motor to a Chevy transmission. They also had a unique water pump, so that Chevy could use the standard radiator from the gasser.
Hope that helps.
Jack
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'83 Isuzu P'up Diesel LS - Original Owner
JoeIsuzu@IsuzuPup.comIsuzuPup.com