Personaly I wouldn't bother with the 1.6, by the time you tune it up to a lightly tuned 2.0 sort of power level it'll cost loads and will be fairly highly strung.
No it won't, set of SS4 cams, full exhuast, Shawspeed HD bottom end bolts if you want to raise the rev limit, and a re-map and you're looking at 140-150bhp, and it won't be hightly strung, know loads running that power daily! Mine will be soon.
Orrr, you can make a tubo manifold, stick a T25 on, and a de-comp plate and run 200-ish bhp happily. Ollie Clarke ran a turbo'd 1.6 in time attack for a year and gave it death, and it's still running now in a customers car!