Thanks to everyone who helped out with my query.
 
Also spoke to Tristan from WTF who gave me some other advice:
 
(1) Have already replaced the rocker cover
(2) Advised by WTF to also check oil pump seal (RHS engine bay leaks)
(3) Check around Distributor (LHS engine bay leaks)
(4) In my case head gasket confirmed by mechanic.
 
While at it as the engines coming out having timing belt done too. Cars only done 138K and had been garaged for 6 years unlicensed before I bought it.  Engine bay was in prestine condition when I bought it and inspection didnt reveal any issues.
 
Being driven as a weekend car only, and after first year of ownership, first issue with the car... oh well what can you do ? Booked in with mechanic :) 

Well...if it's gonna cost 2k+ for engine recondition/head and you said you want more power...may I suggest a 3SGE BEAMS engine swap? They are about 200hp flywheel but kinda uncommon motor from what I heard.
Unless you want more power then tubby is da way to go (more common). You'll need axles and hubs etc tho

Hey Tree
 
I'd love to go 3SGE Beams (~147KW) but I also dont think I'll have much luck tracking down one of these motors :(
 
Well I drove the car to the mechanic today and having the repairs carried out.
Just a quick question and throwing it out there......
 
I understand that the Jap G-Limited's are rated at ~121KW while the AUS model (Gen 2) is rated at ~117KW (please correct me if I'm wrong)...where or how can I up my power to be on par with the G-Limited...is it to do with the cars ECU settings???...is this somehow programmable to the AUS stock ECU???...I know the power between the two is so minute and may not even be worth talking about but just curious.
 
Also....can anyone from first hand experience compare a NA Gen 2 to a  NA Gen 3.....is the ~131KW Gen 3 motor compared to Gen 2 motor ~117KW - 121KW a major difference.
I read somewhere that Gen2 0-100Km are capable in 7.5secs where as the Gen 3 is 7.2secs apparently.....does this sound right to other peeps here.....(I would of thought the Gen 3 would be a couple of car lengths ahead of the Gen 2 on the power in a straight line??)
 
Sorry guys I cant afford turbo right now.......mortgage repayments are enough for me...so NA is the way for me to go right now ;) Thanks to ALL again
 
 

If you're in NSW, there might be a few BEAMS lying around ask Ichiban Imports or SSS Automotive but don't get a bare engine otherwise it's just a headache.
 
There's a theory that Japanese fuel is of better quality so JDM motors run at a higher compression or have no EGR system which bumps up the power a bit. You won't have much luck "tuning" the ECU with a dyno or whatever.
Saying that there is a way you might be able to increase power with NA, by modifying the intake system. A guy named Wiz has done this with dyno results and got 4rwkw and 14 Nm of torque!!! I was in the middle of this but never finished it as my engine blew lol (well in about 2000km)
 
I recently read a post up on MR2.com and there's a guy named mr220v who said that the gear ratios are slightly different on the Gen 2 and Gen 3 motors. This might explain why Gen 2s are equal or faster than Gen 3 despite less power. Gen 3 apparently might have a more relaxed gear ratio.
 
In the end it's all about time and money again so easiest and least headache method would be what you're doing I suppose.
 
P.S There's a guy called "Whore of Babylon" that is selling a Gen 2 reconditioned head with some work done which might be a good semi-upgrade for power. Maybe ask him about it?

" This might explain why Gen 2s are equal or faster than Gen 3 despite less power."
 
Thanks Tree
I didn't know this.
 

121kw vs 117kw, 7.2 sec vs 7.5 sec, I think its all trivial differences personally, I doubt you could tell the difference in the driving.
 
Years ago on a club dyno night, a gen 2 NA with intake (cold air), custom extractors,  exhaust (plus some other bits I cant recall) was similar power to a stock gen 3 NA.  We were surprised as the gen2 had lots of goodies added and was basically the same as the gen3.
 
I know one mechanic used to advance the timing ((and then you could only use 98 octane fuel) for a bit of an easy gain.
 
But if you want a significant increase in power, just get a 3sgte, you will definitely notice the difference.  
 
If you are going to spend a grand or 2 chasing a few kws, you will probably be better off spending it on getting the suspension sorted to your liking.  Thats what I would do.
 
Cheers

just_ace

Fit a cometic mls head gasket. Dont need bigger valves, just fit some bc 264 cams and springs.

Cams will make a bigger diff than valves.

^what he said - longer duration cams and higher lift ones will make a big difference!