Thats a QUALITY project. Ive thought about building a quarter mile monster out of a Renault 5 GTT before.
Love the idea of just stripping/lightening EVERYTHING, not caring what it loks like and giving it soem silly power - exactly what your doing here!
Keep us updated!
PMSL at the way you carefully removed the C20 lump
If you weld up the rear shocks to irradicate all squatting along with the welded diff you should no problem with traction with a half decent set of tyres