Suzuki H25A V6 a decent engine?

If you can, grab the H27. Same dimensions but that extra displacement gets you 170hp instead. They are a good little engine. Oil changes are critical. Timing chain tensioners were their weak spot. There was a redesign around 2003 IIRC for the replacements to help them last longer than 80k miles. In the Grand Vitara it was a 4 hour job to swap due to the radiator/fans and all the other stuff shoved in there. Making it easier to access the front  of the engine would make it a much simpler job.

It is a tall engine in stock form but narrow. The oilpan is really deep and holds 6.5 qts you could gain several inches in height by pulling the bottom part off and making it flatter. 

What trans is in it? 150ft*lbs is a lot for a Type 1 transmission.

Type 1 transmissions are the standard ACVW transmission for Bugs and early busses. These come in many flavors between swing-axle, trailing arm, portal axle, etc.  Then you have Bus transmissions such as the 002 and 091 which are stronger but lower geared. The 091 being the strongest, found in T3 Busses. There is a car I've seen using a J35 with the 091 and it's held up pretty well to racing.

I've seen kits to convert Subi transmissions to rear engine rwd, rear engine 4wd or mid engine rwd. Pretty cool stuff if you really want power handling, and better gearing(IMO) than the VW transmissions.