Dont touch any suspension components not made in Germany, and approved by the TUV. It is well worth it. Trust those who have made mistakes and are passing on their lessons. I reccomend Eibach or H&R springs, and Bilstein or Koni Yellow shocks. Otherwise, KW coilovers rock. Google search for Dragans Australian distributorship. He is good value.
As for the engine, the 90bhp 8V engine cannot be tuned to get a big power increase unless you turbo or supercharge. Best bet is 2.0L 8V from Mk3 or Audi. Otherwise, 16V is a good choice. Esp 2.0L 16V. My tuned 8V is putting out 135bhp, but it was a UK import...
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