"gotcha" Front swaybar is mounted dirrectly to the front struttower brace. I know it sucks for finding a coilover solution on the ease. People are doing it though. Here have a look over here for more info on the car and solutions that other people have come up with. www.subaru-svx.net
I'm keeping my 94 LSi pretty low key as all my money goes to the Impreza for a long while. Brakes actually handle VERY well. a few small upgrades of better rotars and good pads with SS lines is all you really need. Best thing you can do now is drop weight. 4455lb curbweight. Good luck though.