all you need to know is here,
tercel paseo engine swap info,
http://www.toyotanation.com/forum/sh...d.php?t=132826
i'd actually go there and post if you're unsure. i've been a member for years.
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FYI,
the E engine is weak. cannot take abuse or neglect. but if cared for properly it lasts a life time. if the E motor is toast, see bout a JDM replacement, swap to a 5sp, and you'll get 35/40+ mpg.
owner 89 terc 3E 5sp 35/44+mpg. same platform.