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So what upgrades would you recommend? Lowering springs and sway bars to start?

First you need to get that rear axle in check. Upgrade to an adjustable panhard bar by Whiteline or BMR, if you really have the cash get a Watts link. Then look into a Torque Arm. After that your gonna want to do the springs.
 

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How much does the panhard help if the car isn't lowered?
The panhard bar helps the side to side movement of the axle. Your car already has one stock but it is mediocre at best when it comes to autocross. A new one will really help keep the axle centered. Then the Torque Arm I mentioned combined with some rear lower control arms will help the up and down movement of the axle through cornering. Your car will pretty much squat and go through corners. Both are HUGE when trying to make a live rear axle car handle well.
 

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Quick question for someone with a bit more experience than me that relates here...
The oem panhard seems stout enough, but the bracket is very flimsy. My bet would be it would be most beneficial to replace the bracket to help extreme duty cornering, vs the bar itself. Really don't think the oem bar will flex, but the attachment bracket is made of aluminum foil I think!
Troy
The main reason I suggested the adjustable one is that the stock one is good, but i wouldn't say its autocross worthy. A nice adjustable one for the best possible stiffness would be awesome for autocross. And you are right about the bracket, its pretty weak.
 
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