Coilovers will fit on the rear you need to mod the inner arch at the seam slightly(with a hammer) as the spring platfrom and spring sits rel close and can catch. Im running gaz coilovers on mine and dont have any problems.

I can mind what issue it was but pm mike and he will give you the details.

I was in with my mates S1 when you picked your car up. Sounds like a nice spec, similar to what im getting built justnow. Alan was saying it made good power and drives real nice.