There has been a fair amount of discussion on this subject around here. Its not all very easy to find though, I'll have to see what I can search up. The short answers though:
I've yet to see it done, but the motor mounts look like they'd line up. The trans has the same bolt pattern so you could bolt to the LUV 4Spd, though I'd go with the 5Spd you would find bolted to the 2.3L in a Trooper or 4x4 pickup (86-mid 87, maybe later in pickups). You may have to get a little creative with the clutch parts, I'm not 100% sure everything is directly swappable from 2.3 to 1.8 (like the pilot bearing, etc) Front driveline from the 5Spd donor should fit, rear driveline will need shortened.
Wiring is a bit of a challenge, but not really too bad with a carb'd 2.3L motor. A little work on the ignition power and getting an alt wired, the rest is pretty optional.
If you really want to do this right here is the recipe I've been cooking up for a while:
2.6L 4ZE1 motor with 2.3L intake, Weber carb, Delta cam, calmini header
5spd trans/tcase from the 2.6L (Beefier trans, much larger clutch disc, but need to rework hydro clutch into the truck setup for cable, could just use a 2.3L trans with cable clutch)
This setup should put out somewhere around 130-140HP, and still get gas mileage around 20-25MPG. More than enough power to snap front axle CV joints, while still meeting/beating the stock 1.8L on fuel economy.
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