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I agree with the maintenance and tuneup first.
Get the Toyota workshop manual. It is worth the money. < books4cars.com >
Check the TVIS system and make sure it is working. Mine wasn't working when I got my GT-S, the diaphram was bad. Fixing it made the car behave quite differently.
Check your exhaust systam. Make sure that it has not been butchered and pieced together with many different size pipes.
When all that is good, look into some good shock struts. For regular daily driving, KYB GR-2s are great for the price. Konis would be better, but cost more.
I don't think there are any quick bolt-on go-faster parts for this engine that are worth the expense. The best bang for buck, without a complete engine swap, will be to get pistons from a 90-91 GT-S, or some Wiesco high compression pistons (you would be looking at about $600 for the Weiscos + the cost of installation). I have never done that myself, but the increase in compression should give you a decent improvement throughout the RPM range.
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'88 Corolla, AE92 SR-5, 7A-FE swap/GT-S suspension
'87 Corolla, AE82 FX-16, 4A-GZE swap (autocrosser)
'03 Tundra 4X4 Access Cab, (FX tow vehicle/Home Depot runner)

Modification: Changing something to what you thought it should have been from the start!
Last edited by Donald; 07-24-2011 at 11:08 AM.
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