your intake should be fine. don't waste your money on a "cold air" or "high-flow" filter. usually, most air is held up at the mass airflow sensor, and there is also turbulance added because of the sensors too. the turbulance creates negative pressure in the intake tract, which isn't as much of a big deal on N/A cars as it is on turbos, but, its still there….
if you want to do a new engine, don't get a b16 as suggested by = 4 1 3 0 = … get a b18c. it can be had for much cheaper, is a direct-replacement, has .2 more litres of displacement, and creates more power. oh yea - did i mention its easier/cheaper to add a turbo kit to?
speaking of turbo kits…. GReddy makes a cheap one for hondas. i may be wrong, but i believe stage I is only about $1,600usd. if i was stuck in a honda, this is probably the route that i'd go. just keep in mind, that if you're going to turn to forced induction, that you should probably rebuild the block. i also would try to not run any more than about 8psi of boost, because of the age of the car. maybe have it spike at about 11psi, but, you don't want anything to get harmed.
my 2003 vw jetta wolfsburg 1.8t is currently spiking to 19psi, and maintaing 15psi until 6300rpm. the stock boost mapping is a spike to 11.5psi, and then 7.75psi until 6200rpm. yes, i am pushing the engine a bit, but, i also maintain her like crazy.
have fun with the little car though.
another route you may want to look at is suspension. a cupkit, anti-roll bars, and strut-tower braces would be a good start. depending on how much you want to invest, sub-frame braces could help too. a car that handles like its on rails (and trust me, no matter how much better it handles than the old jeep, it still isn't on rails by ANY MEANS, stock, compared to what a good susp. make-over would do for it….).
anyway though, going fast through the turns, is MUCH more exhilerating than going fast on the straights. and its usually cheaper, too…
either way you go though enjoy yourself. it will be a lot of fun.
