Fitted an R500 flywheel and clutch to my 1.6 two years ago. No problems at all. Engine spins much faster, also loses speed much faster which is noticeable when changing gear as slight jerkiness. But takes off like a scalded cat.
I went through the same dilemma years ago. I always felt as if the car was breaking from the rear.
I went for the James Whiting Alcon package which is a really nice piece of kit. Light alloy 4 pot calipers save a bit of weight and you dont have to go to the considerablee expense of replacing the discs so is an easy job to do in an afternoon. I also upgraded the pads and fitted an uprated master cylinder. Brakes are now superb. Have had no problems with overheating. This is much cheaper than going down the Caterham route.You have to watch you dont upgrade the front set so much that you then have to resort to upgrading the rear brakes. Balance is the key.
Or try James Whiting's 4 pot light alloy Alcon conversion for the front which uses the existing discs.
With the right pads these work great on my 200 bhp K series. Has the benefit of using the existing discs.
Some time aog I had exactly the same problem. It was the crank sensor. Disconnect the sensor and remove it, its held in by one bolt.
In the centre of the sensor there is ( or should be) a carbon pole which should be about half inch long
This reads the teeeth on the flywheel. Mine had worn down to less than a centimetre and when the flywheel rotated the sensor could not read the revolutions. New sensor fixed it straight away.
No I am not, never been anywhere near Holland unless there is another Geoff Dixon.
Have tried to e mail you twice but in both cases the mail bounced back. Give me a ring on 07836 608790