I'm with Goody
As for California emissions, last time I looked there was wiggle room there. Key is "engine replacement" vs "engine swap".
An engine swap would be putting a family of engine in it that was never an option. Like a 440 or any variation of Hemi.
Engine replacement would be putting an LA in where and LA was, like a 360 to replace a 318. As long as the 360 still sports all the original 318's emissions gear it is legal and no special requirements exist.
If you put a 440 in then you have to use a pass car 440 of same or newer year manufacture with all the 440's original emissions equipment then you need a BAR referee to verify and approve the swap.
A Diplomat with a 360 is fun, BTDT.
As for handling, every one bangs on the transverse torsion bar setup. I never had an issue with it's handling under performing for me. Anyone here actually have a personal example of this?