If you want to get an NA SW20 to be 'racey', look for one with as fewer options as possible....
Weight is the biggest killer of NA cars IMO.
No targa tops (they are more weight, + less structural rigidity.. and they leak!
)
pull out the aircon, lose all of the crap in the boot, (except for the ECU!)
pull out the spare tire in the front.
Get some lightweight 15" or 16" rims with a staggered offset (wider tires at the rear than the front)
Keep the sound system minimal (you dont need much, as it is such a small cabin)
Get some decent suspension for it.
Do all of that, and then learn to drive it well.
If you say you like driving the twisty bits, then that will be enough to go pretty hard.
Then worry about engine mods etc. after that.
Worrying about insurance + modifying your car = does not compute!
Even if its an NA, most insurance companies will tell you to feck off if they hear that your car has mags, is lowered, has engine work, etc. etc.
Its rather expensive getting insurance for a young person in an SW20 anyway, as they seem to have a reputation for being easy to crash.
However, if I *was* to spend a large amount of money on a gen 2 3sge, I wouldnt... I would start with a gen 3 3sge first, as you automatically get a 15hp head start!
(Gen 3 3sge is available in 1994+ SW20s BTW... )