a 2.8 has got to be easiest way to go, the front arb is larger diameter I believe, I have an m50 manifold on mine, and quite a free flowing exhaust, had a fancy air filter on but took it off and went back to the stock airbox with some extra holes, seems to run nicer that way, its quick enough for what it is, and still quite easy on the pocket to run, ive never thought the stock 2.8 brakes were not up to the job, kept in good working order, a 6th gear would be a bonus, but not essential, my last car was 1.9 z3, loved it, and would have liked to put a 6pot in it, but I don't have the time needed or anywhere to do it. a cheap doner car I think would be a great start, you can hear the engine running and maybe drive it, you would then have everything parts wise and could sell the parts you have left.
a turbo or supercharger maybe the way for a big gain in power, nitros is also a fairly easy way to more go!
hope ive not gone on to much