will a mk3 1.6 engine fit into a mk2 that previously had a 1.6? preferbly without to much trouble, or would it be better to put a mk2 1.6 back in?
It depends what you call trouble? Most mk3 1.6's don't fit, because they are small block X-flow engines, ABU, AEA and AEE. There are a few big block mk3 1.6's which would fit in your mk2. AEK, AFT and AKS. But the commpression ratio is wrong for the carb, it's a high 10.3:1 (the mk2 1.6 is 9.0:1) . Having said that, if you were thinking of extra performance the higher compression could be useful, as would the 1mm smaller diameter valve stems on the post '94 models.