Thats some theory you have there lol! fine with me though, as I'm under 2800lbs in my little CS.what's your XE weigh? My theory is over 2800lbs go with the 2.5, under 2800lbs 2.2. Then it's all about cold dense airflow through the motor.
Correct, if the trans is an auto it will have to be strengthened and cooled so that wont exactly be the cheapest. However a lot of guys on here love the autos for the strip.If I'm correct, the '86 Laser should have the pull through throttle body, which is the first conversion you'll need to do in order to put an intercooler in there, combined with the LW rods and you wanting to break 300 H.P. I think what you want to be looking for is a later model 2.5 T1 CB. That should be reasonably easy to come across. You didn't mention if it's auto or stick (unless all Laser XE are stick - I just don't know that), if it's auto, then you may have issue with the transmission holding up the H.P., in which case you may need to do a conversion. If it is 5 speed, then you probably should consider swapping to a A555 transmission as mentioned.