Yes, you can use your 7MGTE A/T wire harness and ecu for your 5 speed swap. You will have to wire your neutral safety switch connector so that the computer thinks you're always in neutral (allowing it to start; you should be able to wire that into your clutch safety switch so that it will only start with the clutch pedal depressed). You may also have to add some wiring for your reverse lights to work. These should be outlined in the forum, possibly in the thread that you originally posted in.
And yes, it's been stated that a healthy w58 should hold up to that power, provided that you're not too rough on it.
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1989 7MGTE R154 Targa Top White Package w/Blue Interior
Driftmotion 57trim CT26, Upgraded Intercooler, 2.25" Hard Pipes, 3" Turbo Back Exhaust with Test Pipe, HKS VPC w/GM 3 bar MAP sensor, APEXi S-AFC, Walbro 255lph fuel pump, ProSport EVO Series Boost / Fuel Pressure / AFR gauges, Lotek a Pillar Gauge Pod, HKS Type 0 Turbo Timer, Eibach Lowering Springs, Tokico Illumina II TEMS struts, custom powder coated Motegi Racing TrakLite wheels
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