One of the great advances that has allowed the boom in diesel car sales to take place has been the understanding of how to "hang" a diesel engine so as to minmise the transmission of vibration into the shell. It therefore becomes a crucial discussion what engine mountings are used (and also the gearbox mount). As a general observation these tend to be quite high up on the engne so as to allow the engine to "wobble" freely on its axis of vibration. Thus simply bolting a modern diesel to P6 engine mounts will produce an agricultural pigs breakfast. Considerable care needs to be taken to replicate the engine mountings from the original installation. Unfortunately the only in line installation of a Perkins Prima (which is what the Montego engine is) is in the Sherpa van which predates the full realisation of this technology. So, while this conversion is a briliant idea, it's likely to provide a rather less than Rover noise and vibration environment.
My inclination has always been to use the 5 cylinder 2.5ltr from the Land Rover range which ought to fit lengthwise and has a modern engine and gearbox mounting setup to transplant with it. The gearbox can be simply substituted by the 2WD R380 (the developed LT77 from the SD1) from, you guessed, the Sherpa van. This conversion gives plenty of power and has the advantage of harking back to Rover's experimental 5 cylinder P6 / P7.
Chris