First, before you spend an ass load of money on souping, make sure your are is mint stock. Fix any clicks, clunks, shimmys, shutters, etc. Things like a new fuel and oil filter will help you out. And of course any other maintenance issues should be addressed. Then....
Cheap and easy, K&N FIPK 8.9 horses at 5300rs, 3" turbo elbow available from Suprra_girl, 3" Down Pipe from Suprasport.com either the RT or Cooleeze i'd recommend. And then of course either no cat or a 3" high flow cat (if you plan to make it a street driver to stay in smog rules) and then finally 3" exhaust pipe and muffler out the back. That should net you quite a few horses quite simply and welllllllll under your 1200. You should have plenty left over for something more drastic when your ready like a full intercooler/hardpiping rebuild or uping the boost. And an AFR gauge...