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D series and B series blocks are completely different. The D16 shortblock is not "the base engine block for all of honda's 1.6L engines" as your friend puts it. Parts between D series and B series engines do not swap over.
correct I have a 20001 si with a D17 block I think the best conversion to date I've seen for speed is going too be still a k20 hybred or an M series maybe even stuff a MZ1 if you have the time.......