Hi Nicholas,
I certainly would encourage you to do it if it's what you want, we just want you to go into it with your eyes wide open to the potential expense and timescales.
I don't regret doing mine at all, although as mentioned before I don't think I'd do the same today, cheap S2's are probably half the price they were when I did mine. My other reason was I had an awful lot more than the car was worth invested in brakes and suspension at that point (it was always my plan to do the car in stages and that's exactly how it's worked out over the last decade or more).
Apologies if you've stated this before and I've missed it, but are you using the car for road or track use? If it's track then I think there are much better ways to spend your money which will shave a lot off your laptimes and give you more entertainment too.
If you don't want to accept the compromises that a track car will bring then it's tricky to know what to suggest without the engine change (a budget would help too if you have any idea)
I think a low boost SC would be a lot of fun, the trouble is it's going to be quite expensive unless you diy a lot of it, the only kits on the market are pretty expensive. If you could get away without an intercooler (might be possible on a low boost road car) then it will simplify the plumbing somwhat.
Much as I'm no fan, Nitrous must be way up their for value for money, but personaly I couldn't be bothered with refilling the bottles.
I'd expect a worthwile engine capacity increase to be unpleasently expensive, an engine swap will probably be much cheaper.
I feel there are only minimal gains to be made with the exhaust (we modified mine, intially making it effectively a straight through (unpleasent noise, perceived loss of torque) and one silencer removed (noise and perceived improvement in breathing, it was subtle but I'd do it again).
A chip will not get you much in the way of gains either, but can be nice to have as it improves driveability. The Promax ones seem nicely developed and IMO are amongst the best off the shelf ones. The magazine article you mention I think refers to the SciVision MAF which is quite a different thing. The ideal is a proper rolling road rechip after you've done all the rest of your mods.
I could go on (I normally do), but it's late and the rest would be even more gibberish if done tonight [
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