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if you say that its leaking oil, then i guess i recomend you to get a new engine, and i guess since turboing your 240 is on ur list u could change that to swaping a new engine like sr20det, which will cost you about alitle bit more then turboing your ka which is leaking oil, you can fix the oil leaking, but then whats the point if the engine already has almost 200k miles on it....
i would reather swap the engine then fix the oil leaking on the engine that you have..... but thats my thought....
you dont have to change it right now, you could do the suspension first then u can swap....
any way peace
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