Anything can be converted, it just depends on how much knowledge & patience you have. Firstly the 1.4K block, as supplied by Caterham, was the old "wet" linered version which cannot be upgraded with a simple liner/piston/crank change. So unless Arrowstar have come up with a "fix" you will need a new "damp" linered block. Secondly quite a bit of machining needs to be done to the doner block to make the starter motor fit (taking away the engine number; think on that!). Thirdly there is an issue on which flywheel to use with the 1.8 engine (probably wont fit Caterham bell housing but can't remember exact detail); no problem with the 1.6. Thankfully the cylinder head is common with 1.4, 1.6 & 1.8. However if you can get a VVC head this is the route to go minus the VVC bits. I assume you're ditching the Rover MEMS in which case you can forget about the Rover immobiliser. I went down this route last Winter in changing from 1.4 to 1.6. Biggest problem (apart from the crank breaking on the doner engine)was the coil. The 1.4 uses a conventional coil whilst the 1.6 & 1.8 use a more modern electronic coil. It took ages for this to dawn on us. No problem in sourcing the coil but try getting the plug on its own! Initially Caterham wanted to sell a new loom but after a bit of arm twisting supplied the plug. The loom had to be modified (done by Southern Carbs) to link up to the injection along with a new crank sensor. I'm using the Piper BP270H (hydraulic)cams in a standard head with Jenvey throttle bodies controlled by a GEMS ECU, although the Emerald is flavour of the month. Both these ECU's are plug compatable with the Rover MEMS. On the subject of injectors, I don't think there are any problems in using 1.4 injectors in a 1.8 engine. If you do everthing yourself then look on a budget of about £3000 for engine, cams, ECU & throttle bodies.
Good luck.
Mick.