Here's another guide to modifying you Supra. However your first goal should be a well running and reliable car, not a HP number.
http://www.supraforums.com/forum/showthread.php?152334-Newbie-s-guide-to-Modifying-your-MK3-turbo&highlight=afc
There's a shop in North York called Canadian Cylinder Head Tech. They share a building with Dynamotorsports tuning shop and do tons of work for them, and recently built a 2jz that is making well over 1000whp. They did the machine work on my 7m and the costs were very fair. Give them a call and...
It has more to do with the stress on the bottom end. Think about a bicycle and how hard it is to pedal in a high gear at low speed. You have to be in the correct gear according to your vehicle speed and rpm. Basically WOT at 2000rpm in 5th gear is not a great idea.
Here's a link for troubleshooting the ignition system: http://www.cygnusx1.net/Supra/Library/TSRM/MK3/manual.aspx?Section=IG&P=3
Link for tps troubleshooting: http://www.cygnusx1.net/Supra/Library/TSRM/MK3/manual.aspx?S=FI&P=101
Just follow the instructions and test all of the components...
If your going to open up the trans might as well do syncros and bearings and have yourself a fresh gearbox. It's not all that difficult providing you have access to a press, just follow the TSRM.
Rebuild kit: http://store.driftmotion.com/static/i-r154transmissionrebuildkit.php
Here is the thread on head gasket sealer:
http://www.supramania.com/forums/showthread.php?29335-Thinking-About-Using-Spray-Sealer-on-a-MHG-...Might-Want-to-Read-This
You do need a bead of silicone where the timing cover meets the block however.
Found this thread a while back about using a Ford Ranger part.
http://www.supramania.com/forums/showthread.php?137883-How-to-Replace-a-MKIII-Driveshaft-Carrier-Bearing-for-50
I've never done it so I can't give and insight but, it's an option.
Yes, it's between the two half shafts. Your going to want to look at the rubber carrier for cracks or tears, and check how much play there is by moving the drive shaft up and down.
You could get a shift kit to improve shift timing and quality. Usually requires a bit of modification to the valve body such as changing springs and adding/removing check balls. Did a quick search and found this...
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