I'm after recomendations and estimated pricing for a replacement power unit. I'm after a fairly standard 1275 (55-65hp) with rebuilt gearbox, Quaife LSD, starter motor, alternator, clutch, etc.

Basically I want to replace my whole engine/gearbox etc with a reasonably powerful power unit that will be very reliable.

Which workshops are good? Any idea of how much I can expect to pay?

Can't suggest any workshops, but your pocket may need to be as deep as 10k.
$2000 for the engine, $6000 for full rebuild, with balanced internals, $2000 for the alternator, clutch, starter and diff.

I'm no mechanic, but thats no too unrealistic these days.

Well, if you're going for a full rebuild, there's not much point in keeping it standard. You can buy rebuilt power units for $6k in other places, not sure how much is aus:

http://www.minimania.com/web/Item/1380% ... Detail.cfm

Unless you're keeping a cooper or a gt original, I would just leave the engine as is, or go all out for a fast road build. And let's not forget the 1100 - many people are turning to these for fast road cars, since they are far cheaper.

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ex-NSW Police 1970 MK II Cooper S
VMCI #43

I want the engine to be very reliable so I figured a larger, under-stressed engine would be more reliable. Is this not so?

can't believe MadMatt hasn't popped in to sprook his twin cam conversions .
But in all seriousness have you considered that option Twin cam, 8 or 16 valve, 8 ports, every good air flow rates, will fit on a 998 up to a 1412, fuel injection or carbies, quad throttle bodies or just one....their a good and easy option if you want decent power from a rather calm engine.
Although for about the same price you could get a 7 port A series head ready to go. Changing the head is a more costly option compared to rebuilding a std head but the power gains are worth it.

What engine do you have now?

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Respect mine and I'll respect yours.

I've got a very neat 67 deluxe with a matching engine number 998 that seems healthy but only puts out 26 HP at the wheels, the gearbox seems OK but sometimes crunchy when changing into third. It also struggles at freeway speeds and at the slightest hint of a hill.

I was not in a hurry to replace the power unit but the gearbox selector shaft spline is damaged and I figure if I'm going to take the engine out I might as well put a good one back in.

I want to take the whole power unit out and put it in the shed so I can return it to original if I feel like it. The car has drum front brakes but I have a disk setup ready to go in.

I really want to stay pretty original so no twin cam, webbers or suzuki engines.