Robert, aside from echoing the advice that Jason and Dave voiced about spending money first on your skills, then, later 'upgrading' the car (although aside from dropping a V10 into it, I don't really see what you can do), the best advice I can give you is:
never, ever, put a K&N in your car.
A) It actually causes a performance drop, and
B) The additional dirt it allows through will cause more wear and tear.
My race car had a K&N cone when I bought it; it now has a factory airbox and a Mahle paper filter and I have the dyno data to back up that choice.
http://www.bolhuijo.com/airflowtest/index.html
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