well...

It is a big engine to fit on the MT2 but it would be sweet.

First off, you would snap the MT2 shafts first time you hit the throttle. So you would need to upgrade to much stronger shafts.
Then you would need the Steel spur gears for the funfactor or use a set of genesis spurs on a funfactor hub and you would have to find some good steel pinions.

I'm not sure the diffs would take the power either. or the center shaft.

I would imagine it's possible, but it would take some extensive modifications.

If you are interested in an engine upgrade, check out this thread http://www.rcuniverse.com/forum/m_3083513/tm.htm