Your car is a Series 2, which is a better starting point than a Series 1 VT, though not by much. Before spending money on the flash stuff, think of what can be improved from standard to make the car safer and more pleasant to drive. The VT rear suspension was woeful and the lack of camber control means that you can end up with excessive rear tyre wear. Give some thought to replacing the rear suspension assembly with one from a Series 2 VX onwards as they were sorted out by the factory to eliminate the tyre wear, improve handling and ride quality. You can then consider lowering the car without the serious camber issues that VT's suffer from at the rear when lowered. At the same time, consider new shocks all round as the car probably still has the originals and they are pretty well certain to be knackered by now. Don't even think of lowering the suspension without addressing the rear camber and shock absorbers first - you will be wasting your money unless you fix these things. They're not very cheap but they are essential. Also look at the suspension bushes, discs and pads, brake bleed (bet that hasn't been done for yonks), and as others have suggested, oil changes all round (engine, steering, trans and diff), coolant, filters, plugs - anything that should be addressed during the service program. Older models tend to get neglected at servicing time so getting these essential things done at the start means you have a nice clean sheet from the outset.
I realise these suggestions are not at all exciting and won't improve the looks of your car, but they are sensible and will ensure that long term, you will get a better run out of your car and enjoy it more.
