http://mr2oc.com/showthread.php?t=325576
Well, since I have a 160+ HP (at the wheels) 4AGE I think I can give you an idea of what it takes.
You won't get there without compression and we're not talking thin head gasket or shaved head either. Figure on at least 12:1. Weisco makes 12:1 pistons. Rods aren't "required" but I wouldn't want to trust the OE rods at those power levels for long. While you are in the lower end blueprint the crank. The pistons and forged rods are already done.
The head doesn't take much. A little port cleanup is required but this can't be done by an amature. A pro will know what's necessary. You will need cams with enough lift and duration. Figure on 270+ That also requires valvetrain components to prevent valve float. TRD or Crower is ideal. To dial those cams in you will need a set of adjustable cam gears.
Then you need an exhaust system that flows enough. A good header and a proper exhaust pipe and muffler are a must.
The OE intake will get you there but you must ditch the TVIS and the air meter to have enough flow.
Of course the OE ECU and fuel system has got to go. A stand-alone is the only way to get there. You also need a higher volume pump, higher flow injectors and the supply lines, pressure regulator and filters to accomodate them.
To keep the motor alive you will need a high volume oil pump. To get the power to the transmission you will need a stronger clutch and a light flywheel to reduce parasitic losses.
Finally, you will need dyno time to tune it all. Figure that you will need to turn at least 8500 rpm to make those power levels.
Cost?
Pistons: $800, rods $800, machine work $500, head work $500, valvetrain $800, cams $400, Cam wheels $250, header/exhaust $1000, Clutch/flywheel $500 (or more), fuel system $1000, ECU $2000. Then add another $2000 for incidentals and some dyno time.
So $10K is about where you will end up.
-Steve