GT3 said:
RWD, Spaceframed, YB powered AX
RWD as well? That's awesome... a proper wolf in sheep's clothing.

Surely there will be next to no weight over the rear wheels which will make for some "interesting" handling. Maybe have the battery and a few bricks in the back along with wider wheels to cope with the power.
GT3 said:
Handle pretty good with a few choice mods. Same suspension setup as mk1 106 xsi! So very similar to 106 gti / saxo vts. (torsion bars, yes.)
The suspension sounds good... With the 205gti's, people often steal wishbones and things from it's bigger brother (the 309 and sometimes the 306) to get wider track/better brakes/etc. I'm sure you could pinch a few choice bits from the saxo/106 for the AX, as it's always nice getting upgrades from the scrapper.
I'm really tempted to get an AX now... All I really knew about them until now was that the AX GT uses the same 1.4 lump as the 205xs, but it's quite a bit faster than the 205 as it's so damn light.

It definitely gives the larger engined 205gti's a run for their money.
Ideal cheap track car for me would be (prices are crazy guesses):
Old non-rusty AX - £500
saxo vts/106gti donor engine - £250
turbo conversion for ~ 160bhp - £300
then a bit extra for a cage, harnesses and seats. This could probably be done for less than 2 grand if you did a bit of DIY. 250hp per ton maybe?
RWD would be nice, but there doesn't seem to be that many cheap and light things out there, apart from an mr2 or a 200sx.