Is that ticking sound coming from the top end of the engine? If so, try putting in some thicker oil when you do your tune up. If the sound quiets down or goes away, congrats you've got lifter tick. It's not something serious, but worth addressing if you have the motor apart.
Is it an NA or a turbocharged version? If NA, the cheaper way to get power is to convert to turbo. If you have a turbo, an intercooler and turning up the boost would do well for a while. Exhaust is pretty much a must for a turbo car, but reguardless of what's in the engine you have you will want to address the suspension before you do much more than that.
As for tools, you will want a set of open end wrenches, sizes 8mm to 14mm minimum. Probably will want a ratcheting socket wrench as well, and a torque wrench. I will assume that you have various screwdrivers around the house. Download this:
http://xenonz31.com/files/1987%20FSM.zip
As for body kits...
http://az-zbum.com/information.body.kits.shtml
If you don't know when the timing belt was last changed, you will want to do that ASAP. And when you change it; the accessory belts, the tensioner, CHTS, CHTS subharness, and thermostat might as well be changed. The cam seals and front crank seal should be replaced if they are leaking as well. After that is done, then you can worry about paint.