Mike has covered most of it. The 1500 has a reputation for having oiling problems resulting in rapid wear on the thrust bearings and the number 3 rod bearing. Before considering anything more than the 'bolt ons' he mentioned make sure that the lower end of your engine is 'right' and that the oil pump is withing specs. The Weber carb is a popular swap, but some are fitting the twin SU manifold and carbs from the British or Canadian market cars. These show up on e-bay from time to time.
These engines had pretty low compression, so if you're doing a rebuild I'd consider installing flat top pistons to get the compression up to around 9.5 :1 which will still run on regular grade pump gas if the timing isn't too radical. Speaking of timing, I'm beginning to realize how few of us get our distributors recurved to match our performance upgrades. As you build your engine consider sending your distributor to someone like Jeff Schlemmer at Advance Distributros for some work. He'll match the curve to the build of the engine to maximize power and drivability. http://www.advanceddistributors.com/
The 1500 can be a reliable power plant if assembled correctly. My good friend and fellow club member drives a 1500 Midget with raised compression, a cam change, dual SU's and a header. He fitted a Spitfire O/D transmission and routinely cruises at 70+mph without problems and runs times comparable to some of the Bs in our annual acceleration timing event.
'73 Midget (V6)
'59 MGA (I6) under construction
'73 Lotus Europa
'52 MG TD kit car body project.
'98 Jag XK8
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