I've been running a 93 surf with a 2LTE motor for 2 years now. It was a thirsty, gutless engine when I got it, and seemed to heat itself up a lot. Not like raising the needle, but generally the clutch fan mostly engaged, engine "feeling" hot. Had trouble getting to 80. Gave me a lousy 6km/l.
Since then I blocked off the EGR, got my fuel pump calibrated and generally cleaned out the air intake system. It drove pretty well after that, with a decent 8km/l as well. Now I have a snorkel on, an auxiliary transmission cooler, an added 10inch fan on the radiator, a slightly wider exhaust and an inter-cooler. While I feel these slightly bigger expenses did improve power, the real difference was felt after the intake service and fuel pump calibration. The boost was also increased a little bit at that point.
I now have a perfectly sound engine, giving me a decent 9.5km/l. Its no 1kz, but feels decent enough on the road. I have gauges installed for EGT, coolant and trans temp. Nothing has given me any trouble yet, "fingers crossed".
I generally don't like turbo charged engines for cars like these, but if its all we can afford, then there isn't really a choice
Its definitely not among best engines out there. I didn't think I'd keep it this long. However, if your budget is limited, and this is all you can find; with proper knowledge and care, its certainly not as bad as the reputation it holds.