sounds like a monster street car!, what is 1g dsm?
quite a few people upgrade the rear end to 4 link, there's been a few mid-mount projects over the years too (though never seen great detail on these)
haven't known any 4wd conversions, would be awesome, maybe something like a mazda familia drivetrain could work?
obviosly tyres and suspension components are the crucial bits to traction, if you spend enough money on these two things then i guess your going to get the maximum traction possible
in going for a 1200 your pretty much going for the lightest rwd with sensible suspension, and the less weight you have the less traction you will need