I'm guessing that most of the cracks in that paint are a problem of the paint itself. Or perhaps improper paint prep, but I don't think it's an indication of failing fiberglass underneath.
An interesting project for someone who is willing to sink some money into it, finish it off into the fine road car it could be. All the hard work is done, some fettling needed to get it all right, but a complete strip and repaint is in order.
The 4AGE is an interesting swap, but it seems it's a bit more troublesome than the Z-Tech conversions. How much power does a 20 valve 4AGE put out?