LT230 with difflock

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He would be better to go for the 1.4, that’s what I have done and why I have a spare 1.6.

The 1.6 is hellish on road, car is screaming all the time for not a great outcome. The 1.4 is brilliant for day to day running and towing at realistic Defender speeds. If you want high speed a BMW M57 conversion makes sense although expensive.
 
If it is for the TD5 I think you need a 1.2

I rebuild a lt230 1.6 to a 1.3
Mounted it after a lt77 + 300tdi, the 5th gear is now really an overdrive and doesn’t like going less than 60km/h (<40mls/h)
A 1.4 runs smoother I think, a 1,6 would not be advised because your max speed will be to low (circa 65 mls/h on most tire-size, engine max rpm, gearbox and transfer box configurations).
Use the calculator https://ashcroft-transmissions.co.uk/ratio-calculator/
 
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