i say k+n style air filter, janspeed exhaust an maybe a webber/nikki carb....
on paper that should give u around 100 hp (i think!!!) an that would come to about £400 i reckon... if u get the carb second hand that is...
As for changing to 1.6... i say thats not the best idea... fair play if u have the engine already... but its gonna cost abit to get it fitted, an then your insurance goes up... 1.3 to 1.6 is quite a difference.
i say... if your gonna swap engines, go for the swift GTi's 1.3ltr engine it puts out about 110 hp (again, only "i think") and its still a 1.3!!! so insurance only changes a slight amount.
downside is... GTi... u just know whoever owned the engine last has ragged the t*ts off it!!!
anyways... hope that helps... not perfect info... but some good ideas i think.
Andy