bit of a noob question but what is the easiest way to remove a 3rd gen engin?

through the bottom or out the top?

I would say if your doing it at home then through the top with an engine hoist.
Just make sure you remove the bonnet. Sounds pretty obvious but have seen someone try.

Oh and make sure you have a manual handy, makes it less painful. Plus doesn't hurt to read up on the instructions.

Top is the esiest way.. A roll of masking tape and pen or marker always works a treat if your not a mechanic..:) Mark thinks as you undo them as both ends. on the engine and the car if you know what i mean.. Just means when it all goes back in you know where aeverything goes again..:) Worked a treat for me the second time.. the first time i did a engine took me 4 weeks to sort the crap out..:(

thanks guy's

in the next 12 months i plan on doing a complete ralli kit and respray.
should i colour code the engin bay or or go black?
done all my suspention mods an engin work my self at home. but never hade the engin out.
while its out i plan on acl gaskit kit top to bottom and a few other mods. oh and p#ss that dam pod filter off and go back to the standard air box with k&n.
ive got a hanes manual so thanks for the tip guys!

Engine bay respray is always a problem. Unless you remove everything - including wiring looms, anything attached to the firewall like the brake master cylinder and wiper motor - and degrease thoroughly you can get problems with paint adhesion. You can leave it the original colour as you are the only one that will see the difference, or you can paint it black by hand using a rust inhibitor or high temperature paint. Worked well for me the one time I tried that. Just use a torch when you get under the bonnet cos it gets dark in there with black! On my last 2 repaints (full colour change) I resprayed the guards off the car but left the engine bay original.
Are you doing a colour change, and what paint are you using? If using acryllic metallic with clearcoat you are pretty much commited to painting ALL the colour in one go, to avoid colour variations due to temperature, humidity and mix variations.
So, to answer the question - it really depends on how much time and effort you want to put into the paint job, and what type of paint you are using.