Wouldn't an easy way to get around air utilization rates be the use of high octane gas? I've seen people kicking around the idea of dropping the CR to ~17-18:1, so something like E100 shouldn't detonate. Pull the glow plugs, slap spark plugs in, and install a grid heater. Tap the intake mani for injectors, or just use a TBI setup w/ MS&S. Have it engage progressively as the amount of diesel fuel injected drops off. From what I've read, it seems the head is ok up to 7000rpm (gotta watch the timing

), so the only thing I don't know about is the IP. Could it handle consistently going up to 7000rpm? Anyway.... this is just some more of my rambling, so fire away!
