I found the mk4 to handle pretty awful compared to a standard civic type r (ep3), keeping in mind this is another hot hatch that the golf gti was meant to compete with. I would say mine is alright now as it is currently setup but I have fitted quite a few handling mods:
Nex 4 piston calipers
330mm x 28mm vented, grooved two piece floating discs
Braided brake lines
ATE Superblue brake fluid
cooling ducts for the brakes
Solid top mounts
Bilstein pss9 adjustable dampening coilovers, front dampening: 2, rear dampening: 4
Neuspeed 28mm rear antiroll bar
Rear upper strut brace
Front upper strut brace
Lower s3 strut brace
Powerflex rear axle bushes
Powerflex dog bone bush
Super pro dog bone bush
Super pro castor wishbone bush
Super pro front wishbone bush
tt mk1 droplinks
Goodyear eagle f1 225/40 18" all around
Battery and other components relocated to the rear for better weight distribution
Completely stripped out interior and under carriage, now weighs in at 1140kg +/-20kg (5 door) with standard glass windows and standard fuel tank.
Hawk eye aligned with the front at 1.6 degrees of camber, over 7 degrees of castor and the rear 2 degrees of camber
I still need a set of lightweight wheels but feel that in order to make it handle a decent a proper limited slip differential is a must if to be taken seriously at all.