You should be able to find a 94/95 with around 70-90k miles on it in the $6500 range. Look at a lot of cars before you buy, and find a five speed.
I'm partial to the 302 V8s simply because of the quantity of parts out there for them and I am more familiar with old school small blocks.
Like everyone else, gears are a great first mod, and they will wake the car up. 3.73's are the minimum, but don't be afraid of 4.10's.
Subframe connectors are the second item to consider. They won't make you faster, but they will make the car feel more solid.
Long tube headers, off road H pipe, and a nice cat back would be the third thing.
edit - Oh yeah, then find a decent turbo kit. I guess you probably shouldn't waste the money on the headers and H pipe.
