I'm all for keeping the car like it is (just a few mild mods) & getting an M20 to play with. I'd suggest a COP kit, updated 19# injectors and the hose delete mod. I've done them, they're great for the car. I'm eventually planning on a fan delete, MarkD 93 chip, M40 or Valeo single-mass flywheel and a Z3 torsen diff down the road. I'm also thinking along the lines of a WBO2 and updated electronics for my somewhat ratty sedan.
Look for an '88 (super) eta and toss an M20B25 cam, valve springs, electronics, DME & manifolds on it. Easy 200hp with a chip. PM me if you need details.
That is a good price, if only the dollar wasn't so weak! I saw that one myself...it will need a bit of brains and work to get it just right but it's the highest quality stuff. Alternatively, you could pull the parts off compatible cars & weld the mounts/manifold/drive belt. Way out of my expertise though.