Yeah you can't just swap on a VTEC head and poof! You have VTEC. You have to run oil squirters for the head, do the proper wiring for VTEC to make sure it's engaging at the proper points... it's a PITA. I know Golden Eagle makes an LS/VTEC kit, but I dunno if they have anything for an SOHC application.
You can probably trade the LS motor for some springs, but if your suspension is stock (which is looks like it is), you don't want to put just springs on stock struts... that's asking for blown struts, and not being able to do any kind of camber adjustment is going to eat tires like a mofo. I would wait on dropping it until you are able to afford either full coilovers or springs, struts, and a camber kit.
Looks like a fun project, though.
