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Specialstage.com has a good amount of info on setting up the 1st gens. If you want to be competetive in rallycross, stick to a rwd class. This will greatly limit the amount of modifications, but otherwise you will be racing against fast FWD VWs and neons. RWD just can't compete with that, sorry. That being said I will be competing in Modified 2wd this year, and my goal is to beat at least one FWD car.
Swapping in the 2nd gen subframe is a great idea. You can than use suspensions made for the 2nd gen such as the DMS gravel suspension. Don't put too much money into power, especially a turbo. You can't put power to the ground out there. Focus instead on tires, safety and handling.
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