Did it wash out a bit on entry to corners (ie, tendency to understeer)?
Sounds like the setup could have done being tweaked a bit. Setup makes a massive difference to how these handle... before I realised (and was a poor-ass student)... on my first mk1 1.6, I used to just stick the rear tyre pressure up to 37-40psi and keep the fronts at 28-30... that was fun.
Also, softening up the front suspension & firming up the rear is a great fun combination.
My 'charged mk1 1.8 (@220bhp) was awesome... you could fling the back end around so easily