Ooo... a Merc Tracer. That's going to a tough one. With a 2 liter engine with only 110hp on tap. It doesn't look like you're going to have much luck 'fixing' it up.
Like most econo-cars it's designed for moving people from A to B with out much drama. That and there isn't much of a 'following' behind the Merc Tracers like say, Honda Civics. So the world of Aftermarket support will be rather small to say the least.
I would just concentrate on saving your money at this point. Being it's 10 years old, it probably has over 100k miles on it (guess of roughly 10-12k/yr). If you start to 'tweak' on the car now and drive it hard with 'racing' the only thing you'll probably accelerate is the deteriation of the car itself and start to see reliability issues.
I could be wrong.
The only thing I can think of that may be possible is, since it's a 2 liter 4-banger... is that it may have some relationship to Ford's Cosworth division. Mainly where the motor mounts and such, I'd say see if you can't get a Cosworth 4-banger in that little puppy and have yourself a sleeper Tracer. Chances of that being possible are slim, but any thing is possible with the right amount of money... which is another factor. How much money are you looking to spend?
The old Hot Rod saying is "Fast, Reliable, and Cheap... you can only pick two."
If that doesn't make sense then... I'll break it down for you (and anybody else who maybe confused by the saying)
Fast + Reliable = Not Cheap
Fast + Cheap = Not Reliable
Cheap + Reliable = Not Fast
Get it? I knew you would.