hehe, lots of threads about this and everyone has a different opinion.
I've raced my car quite a bit with the following changes from stock:
501X dampers
Slipper
Front one way
501X rear diff halves (more robust)
I think that's it. I've never had CVD's for my Durga. If you space out the suspension to remove slop - particularly at the rear - then it's not likely to fall apart so you don't need to go buy alloy suspension mounts.
If you keep it along those lines it's a cheap competitive racer - or go all out and spend loads!