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You need to top up the level with half a litre of dextron 3 fluid. Then warm the gearbox temperature to at least 60degrees.
When up to temp, undo the square drain plug on the gearbox with the engine running. You should see a small amount drain and this will level the fluid to the correct level.
You would have to remove the starter motor and check the toothed gear that the starter motor meshes with.
If it is worn I'm afraid you will have to remove the gear box and clutch and replace the flywheel and possibly the starter motor.
Is it an automatic?
A Delphi specialist told me that lying them down horizontally does them no good. I always grip them upright in a vice now. I dont know how true it is but havnt had a problem since.
That fault is logged in 90% of cars i see. The serv light is normally paired with another light. Air bag or abs. Do these lights come on when you turn the ignition on?
Does also come on when the oil level is low.
Use your gearbox and shafts, 1.6 16v drivers engine mount. Obviously 1.6 ancillaries, exhaust manifold etc.
Might be able to use the 1.2 coolant pipes.
Use 1.6 engine loom and ecu. get the immobiliser removed off the ecu. Engine to body wiring will be similar but there may be differences in...