Well that depends on what you want to do with the car: If you want to hit the track, go for an adjustable XT130/AE86 coilover set up up front, either off the shelf or custom made. Note that adjustable coilovers are usually illegal, also quite expensive. And get some lowered springs for the rear, then find some short stroke rear dampers (VL-VS Commodore rear damper are a good length).
If you just want to lower the car cheaply, get some lowered front springs (heaps of options for AE86 that will fit, try www.ajps.com.au), don't worry about changing front dampers as the only dampers that fit are MR2 AW11 rears and they require customisation of the strut tubes to fit, you may as well go for the adjustable coilover option. And get some lowered AE86 rear springs as well, plus VL-VS Commodore rear dampers.