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Problems:
Mostly what you would see with any car of that age/mileage (kilometerage?). Rod knock and oil burning is common, as well as sunroof/window/seal leakage. Look for signs of water damage (or moisture) in the rear seat, rear floor pan, and trunk area. Lift up the cover and look in the spare tire well for water. Feel the seat and carpet.
Any major knocking noises from the motor should be avoided!
Engine mods:
There's not a lot available, at least off-the-shelf. I/H/E will give you some power, as well as cam gears. Best bet is to do all the PM you can on the car when you get it, though, instead of modding it right away. Change all fluids, check all belts, hoses, do a valve adjustment, give it a tuneup (plugs/cap/rotor/wires/timing)...
There are a few people on the board from Australia, though they don't post much...
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