Mine is a 95 and a V6 so it looks a little different under the hood. I had to cut more than Miniac since I don't have airbags to lift it up and so I can turn. I relocated the battery to the bed and moved the charcoal canister and fuse box forward where the battery used to be. Hope this helps.
The cannister has something to do with the gas fumes. I just bought some longer hoses and moved it. I have seen people remove it completely. The fuse box, I moved the top bracket forward to another hole that is already there and mounted the bottom mount to the old battery mount. Hope this makes since.
Yes, water and dirt enters the engine bay, but most of it is above the tires and in front of the tires. Hasn't caused me any problems. Water gets in when you clean it with a hose. You could always have steel fender wells welded in. Just put them higher than the stock ones.