Had this dilema when i was 17, is it worth splashing the cash? I'd be tempted to make it look cool, RS2K stuff will make it look trick, but i'd be inclined not to do the leather. I'd maybe look at what it would cost to buy some aftermarket seats as you can then take them out and put them in your next car and the money won't have been wasted, all you would need is new subframes.

Installs are great and again can be removed from the car. Its the engine side of things that is a costly exercise and will probably have more of an effect on insurance than if you were to go out and buy a 1.6. You could be quite unique and wait an year or so and then turbo charge it with an RS turbo lump or zetec. Then you'll learn a bit about turbo charging as well as fitting and removal etc.

One final bit of advice. Don't go 60mm drop unless you are buying a full kit. If you keep the standard shocks, not only will the have limited travel, but also the springs will be lose in the seats when the car is in the air. As a result it will fail the MOT.