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1. Yes
2. You actually must reuse your mr2's original axles. The increased power is not an issue.
3. There is a slight modification that can be done to make the 16v header work on the 20v. It's not ideal, and will cost a bit of performance, but it works ok. The 20v header fits just fine. It just requires a bit of custom work. One thing to keep in mind though, you can't use the exhaust side starter with the 20v headers.
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