Just thought i would make a few comments.
The 8P S3 is newer technology it has better gearing, direct fuel injection, more bhp, more tourque, it handles better, it has an aluminium front setup, probably wider track.
There are many things that are imporved, Audi would hardly make a new S3 that under performs against the previous generation. The 8L S3 was designed in 1996 ish so its gonna struggle. Why not drop an 8P S3 engine into an 8L S3, sort the suspension + brakes & buy some non slip seats.
Then of course get a remap, some of the boys on here are getting 330bhp from the standard turbo pretty good stuff i think.
On another note there are some amazing cars around at the moment.
Megane R26R / R26
Focus mountune ST
Focus RS (this will be amazing)
Astra VXR Nurumberg
C30 (coming soon, basically the same as the focus RS)
All of the above will be quicker than an 8P S3 not to mention the 8L.