Don't use a dry kit on a standard road engine, keep within sensible limits, if you want to go mad, fit forged pistons and have the block 'O' ringed.
Go for it, you'll love it!!!
Try here for everything you need to know about the rover V8 www.v-8.org.uk :: Index
As far as putting the nitrous on the V8 goes, they do cope quite well but as has already been said you need to keep it sensible unless you are going to use forged pistons etc etc.
you may have a heart attack when you hear how much extra premium they want