I recently got a 98 RS 5 speed with 120k miles on it for a great price and I now want to turn it into a project car. It seems to have two small oil leaks and isn't exactly running smoothly. I want to gradually build up the engine, adding performance parts and eventually working my way to a turbo and possibly nos.

I am looking to spend no more than 2 grand right now and will be donig the labor myself. What suggestions does anyone have on what I can do when I take my engine apart in two weeks? What are good gaskets...or if anyone could recommend a good performance rebuild kit or somethin?