Get a full acl rebuild kit and a new timing kit. Would probably set you back between 500-700$. That's pistons, rings, all bearings and gaskets, rear main seal, timing gears and chain. It's probably worth doing the spigot bearing in the back of the crank while the engines out. That's about 10$.
As for the mods it comes down to how much you have to spend. If you can afford the rebuild, just do a mild cam, ports and manifold match, electonic ignition, extractors and a webber. You'll spend an easy $1500 just doing that.