There's a hell of a lot to like about this car. I like the fact it's basically an unmolested 924 Turbo shell.
The standard Turbo bottom-end will tolerate a fair amount of boost and power if it's been put together well.
Areas to watch as always are the standard cast pistons and particularly the top rings. I discovered recently that a lot of the oversize OEM piston rings are crap. The original 86.5mm rings are ductile iron which stand up better but the 87mm rings I removed in pieces from my engine were grey cast iron which are no good for a turbo'd engine.
Either way, don't allow the engine to knock (I'm sure you know all this). 18-19psi has been run on a stock bottom end with no problem when tuned correctly. Tune to the safe side rather than the ragged edge and you should be ok.
If the engine seems to be in good nick I would run it as is for now. You already have intercooling sorted which IMO is the single most important thing as is heat management. Fit a larger more efficient oil cooler if you haven't already. Stock cooler is no good for the track and oil cooling seems to be mostly overlooked on these cars.
There's a coolant flange outlet on the back of the head that normally supplies the heater before returning via a metal pipe to the thermostat housing. If keeping CIS you can take this off and drill the two outlets on it to ~20mm for the large one and ~10mm for the smaller. Then have these running to a single 32mm silicone pipe via a Y piece before returning to the thermostat housing. This helps equalise the temperature of the head front to rear and keeps cylinder 4 a bit happier.
If you junk the CIS then you can make a single flange outlet instead at 32mm and run this straight to the thermostat housing. These coolant mods assume you get rid of the heater/matrix.
Check out the other 924 Turbo thread for stuff related to crankcase breathing which is marginal to start with. Pace do a dry sump system but it's not a budget option. Baffling the sump is another sensible mod.
Stock fuelling is ok to ~250-260hp at which point you'd need to swap to a larger fuel distributor or some kind of supplementary fuelling for more power. At this point it's probably wise to go standalone management but it depends on your outlook and experience with CIS, and maybe race regs.
Sticking with KKK turbos and it would be wise to source (maybe you already have) the later turbo from the 951 250hp engine, then swap the turbine housings with your original and you have a turbo thats more suited to running 1-1.2bar boost with lower compressor outlet temps.
Standalone ECU makes tuning for these mods so much easier.
Other turbo options are using a K27 cold side or having someone like turbo dynamics make a KKK/Garrett hybrid (expensive).
A blueprinted S1 bottom-end with custom inlet and ported head with the above Garrett is capable of ~280hp at ~15-16psi/1.1bar boost. Get the weight down to a ton or less and with a good suspension set-up you'll have a quick, well-balanced car.
Top-end is generally reliable to 7000rpm with the exception of the cam followers which have been known to break up at the adjuster holes. Solid ones with lash caps are available which solve the problem.
You can go for a cam like Steve's (Piper 270) which will give more mid and top-end without going silly and losing the bottom.
You can go further of course but then you're into forged piston territory and more money. If you want to go through more options I can fantasise about these cars all day long over on the other 924 Turbo thread. Like yourself I often get carried away but struggle to finance my crazy ideas
