That 86/8's had the later spreadbore block for the 2l engine, identified by the oil filter being on the R/H side of the engine below the inlet manifold, instead of the awkward one on the siamese block wich was on the L/H which made getting the starter off a pig.
As for what you do to it, well that depends on whether you wish to spend a fortune and restore it or just get it running whatever way you can and enjoy it.
Personally I have S2 axles and steering box on mine as they are better and more easy to aquire/fix. The S1's had semi floating halfshafts on the rear that could be pigs to replace.
I have also recently fitted parabolics that dramatically improve the ride, especially off road.
Definately look at the Land Rover Series One Club http://www.lrsoc.com/forum/ as we have many antipedean members who will give you plenty of advice on what are the options/alternatives for keepig the S1's running down under.
Hope you take the plunge.
