There are a few threads that describe this type of conversion for a 360, but its not so easy for a 1.7, you basically need a 360 donor for alot of items as it uses the same block shape, so you have to modify the 340 for the 360 engine mounts, diff mounts and gear change + use the 360 drive train. Its quite unusual to convert a 340 to a 360 but not impossible.
Apart from that you need the right 200/700/900 flywheel and clutch arrangement (ongoing solution finding for the best arrangement).
Edit to say, the flywheel you have might be ok if its not the large dual mass type (too thick for the 360)...actually just noticed there doesn't seem to be a flywheel on it and not listed. Not too hard to get normally.
