Ok thanks guys.
So there's no real taboo broken to move to the darkside then

Thanks a lot all for your input. I forgot to add I do have a stripped out 3 door too which will be the hard core track tool one day, and this 5 door will be the daily hack.
I think I'll go with most of the above suggestions on the chassis work, being quality suspension with 25 - 40 mm drop, though will leave the jury out in my mind on the slightly altered OEM approach or full poly set up. hmmmmm......
I'll leave the BBS RA's as it has to look stock and will go with Yoko parada's spec 2 or Toyo T1's (any suggestions?)
Peversely I like the underdog appraoch and the ability to shock and mug other motorists and the engine's still hanging in there, if a little smokey on start up. I bought her with 108k miles and I know it's still got the original clutch so want to really try and get her to 200k on the clutch, and have a little party

, and maybe even 208k as that will be 100k under my driving.
Then I'll treat her to an engine and gearbox rebuild, and maybe that new clutch

I wont be going 1.8T as for this it would feel wrong, possibly G60 set up if I can find one or the 2 litre block and rebuilt head as already suggested.
So that's about it I guess. Thanks all again and any other suggestions, please feel free....