I'm led to believe that the 1.3 does respond well to a few tweeks, but it's never going to give big power gains because it's only a baby engine. I think I'd just fit a decent exhaust and filter so it sounds a bit more naughty, which will make it feel a bit more 'fun' as well.
Then concentrate on making it stop and handle better. Fit some 15s, cossie brakes, poly bushes and a suspension kit and you'd have a right little go kart for the back roads. Could always strip it out a bit too, that would help the speed a bit too, and it's free, so an ideal student mod!
Then when you've got some more money, you can look into engine swaps. Plenty seems to fit in the little Ka, so you have a lot of options, or you can always move onto something different.
Where you studying by the way?