Sorry for the necro, but thought I should update for anyone else looking for advice owning one of these.
The original K04 turbos are made of cheese - the first one smoked slightly on idle, but it let go on the next owner. No harm done, second-hand BNR S3 fitted (big upgrade) and fine to this day.
The second 3 MPS was a little too much power-wise for the chassis - I finished off the modifications and mapped to suit and with getting on for 400BHP it was just too much for FWD. In a 6 with AWD it'd have been brilliant - but wheelspin in 4th in the dry was just annoying.
Overall, I'd absolutely recommend these cars to anyone looking for cheap thrills - but I'd buy a Mk2 (as a few issues were ironed out) and make sure the VVT pulley and timing chains etc have been done.
I really miss the first one I had (the silver Mk1) - she's now on quite high mileage and according to the next owner has been faultlessly reliable since I owned her, save for the turbo failure.
