Reading this topic I"ve noticed a lot of misunderstanding. So, I would like to give you some ideas, hope it helps a bit:
1. Cylinder block and crankshaft are the same for both motors.
2. VE pump almost the same - any diesel workshop can assemble FT pump from T and vice verse. All parts are available. Main injection difference is in the cam-plate, however, a lot of other parts also differs. FT pump with its cam-plate delivers more fuel to the nozzles at the correct timing.
3. The 1HD-T has a factory problem with main crankshaft bearrings and with rod bearings. You can easily see that from Toyotaparts catatlog andreplacing the parts numbres.
4. Almost all 1HD-T at this time have problem wih exhaust valve seats in cylinder head. It can not be normaly fixed for considarable budget.
5. Almost all 1HD-FT with EGR system have problem with valvetrain and the cylinder head need to be rebuilded with new parts.
6. Now important: all parts from FTE head fit to FT. Moreover, the FTE head itself much better, than FT head. So, it is better to install FTE head with its cover - everyting is available. I have done this and it works perfectly. FTE camshaft also better for most of us, since it has more low-end and mid-range characteristic, as the intake valve closing timing is retarded by 8 degrees compared to the FT cam (24° ATDC for FTE vs. 32° ATDC for FT).
7. You can easily install pistons from FTE to FT - it works good - my friend just finish doing that. Over words, you can use almost all hardware parts from FTE for FT, except timing gears from restyle FTE, but this is different story.
8. Regarding engine construction - 1HD-FT(FTE) is much better than 1HD-T, because two simple things: Ingection nozzle FT (FTE) sits exactly in the center of the cylinder and exactly orthogonal towards pistol. Combustion chamber inside the FT (FTE) pistol is fully symmetrical. However, because of large valve plates of 1HD-T, its nozzle installed with inclination towards pistol, so, the combustion chamber inside the T pistol is shifted to the edge, and the pistol is not symmetrical.
9. Of course, 24 valve is much better, if you really want to boost this engine over 200HP. And it is works already after 1500 rpms. Toyota fixed all junior diseases in FTE cylinder head.
10. Exhaust outlets inside 1HD-T cylinder head are the same SMALL sized, as an HZ ones. So, their size will be not enough for hi torque and hi HP output. From over hand, you may use twinscroll Safary manifold for easy twinscroll swap. As for me – this is not a benefit - when you know, that there is a much more efficient solution.
11. It is important to understand, that most of 1HD (T,FT and even yangest FTE) engines being offered now, are the subject for rebuilding (if you really want to receive a reliable and mighty one).