1) Good upgrades that don't cost an arm&leg are new pullies, simply adding K&N and removing the breather silencer is another quick upgrade. A little more costly would be to upgrade the rear gears and NOS. Don't know what sort of budget your friend has for upgrades. These are the cheapest, easiest to bolt on for some quick added HP to fly-wheel.
2) You may want to see if you can find a donor car that's been crashed to get everything you need for manual trans.
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