your post says "block" but the content reads more like a whole engine/trans package - the block (or just the engine, with MK1 mounts attached) should be fine - the axles will be different (front suspension on a MK2 is quite different from a MK1 and I recall it's a bit wider as well) -
Perhaps someone else can trumpet in - I've owned MK1 and MK2 diesels - but will admit I never tried to shove a MK2 TD into a MK1 tub -
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