Many people have installed 3800's, 3800SC's, SBC V-8's, and a variety of other engines producing more power into 84-87 Fiero's with out any problems.
Yes the suspension in the 88's have a better geometry, But the 84-87's are not that bad.
Of course when you pull it apart you should check the suspension for wear. A worn suspension (regardless of what year Fiero) can cause problems when an engine of more power is swapped in. If you decide to mod the suspension (poly bushings, performance shocks and struts, lowering springs, etc.) it will make the car handle better than stock.
As for what engine to swap, It is up to you. I would recommend locating some members near you that have different swaps and take a ride in their car.
Each engine swap makes the car act and feel differently. Hence how you want the car to act and feel is a personal preference, so only you can decide what is right for you.
I have an 86 SE with a ZZ4 V-8 and the suspension is modified. I modified the suspension prior to the V-8 swap and there was no difference in handling before and after the swap.
Your car should handle the same way as it does now with any swap.
------------------
Happiness isn't around the corner...
Happiness IS the corner.ZZ4 Powered !![This message has been edited by Oreif (edited 12-10-2007).]