always fancied a 4x4 corrado personally, but really if you want a 4x4 small car with looaaads of power then shirley a short wheelbase quattro from the 80's is the way forward?
It has definately been done before. I cant recal the name of the company who built it but there is/was a bright green mk1 cabriolet with a sirra cosworth engine running circa 300hp and 4x4 using cosworth rear diff.
I remember a Silver Mk1 Contervible with Cossie running gear from 8? years ago (could well be the same car mentioned below that has now been resprayed).
I did come across the magasine fairly recently in my office - I'll see if I can dig it out & get some details.....