1 Brakes 2 Suspension...Koni/Eiback or Bilstein 3. ARB'S firstly especially on a 1.8 then a dii in the box BTW a 1.8unit is much kinder to your clutch and gearbox even on track My car ran a 1.8 with a Pack A head manifold and zorst Sonn as I went 2 litre transmission woes become an issue and a pain I'd stay 1.8 initially for reliability Ian
personally i'd fit uprated ARBs as a first step i've driven mk2s with std suspension, std shocks and springs with eibach arbs, uprated shocks and springs with std arbs, and coilovers and std arbs. and the ARBs made the most difference to handling. You've already said that you have recent shocks - so keep them, fit Eibach springs if you can find them second hand and definitely uprated ARBs. Also i think replacing the bushes with poly bushes is an absolute must far ahead of 280s, coilovers, strut braces etc. depending on the budget i wouldn't bother with powerflex - get the Pro-thane kit from GSF, far far cheaper.
Im doing the same thing at the mo with an 89 16v Ive gone for spax springs on new standard dampers (dampers are essential, even standard ones will hugely improve the handling) Handles great. worry about ARB's & bushes later. 256's will be ok to start, I find group N discs and mintex pads best combo (drilled discs crack, Grooved disks vibrate and mangle pads) A must is goodridge hoses and quality brake fluid and run som ecooling ducts to the calipers. Dont worry about the backs, just make sure they work. A fixed bucket seat, harnessesand proper steering wheel make a huge difference as you can put 100% effort into steering the car and not holding yourself in place. That lot above with the help of ebay and doing the spanner works yourself can be done for about 350. Im not convinced by the strut braces on the market as with the fronts you have to drill the turrets which weakens them and the rear ones just seem to link the tops of the shock absorbers together which must just push against the mounting rubbers. Check alll the other rolling bits such as wheel bearings etc Hope this helps
Brakes are priority as said above. I will back up those who say the ARBs are a must have, I've had the same Eibach bars for about 4 years now. They really are the best 200 you can spend on a mk2's handling. A picture tells a thousand words ChrisP going into Brunchenn @ the 'ring in my car in 2003. As Manny says, check/replace things like ball joints/bearings/bushes and get some extra negative camber dialled in on the front (1deg 30min - 2degs) Edited by: GVK