Tune my Prelude or trade with my friends Mustang GT?

I need help deciding on what to do. I have a pretty cool situation on my hands. I currently own a 01 Prelude with a H22A automatic with speed shift that is dropped to the ground. I think the oil pan is 6 inches from the road. A friend of mine has a 01 Ford Mustang GT with aftermarket dual exhaust and a ECU upgrade. She wants to sell her mustang but is willing to trade cars with me and just sell my Prelude if I want. They are both worth around $10,000 on private sale.

I can't decide if I want to take the mustang or keep my prelude and mod it. I am interested in getting into track racing. A friend of mine races his Honda S2000 on track. I am not interested in Drag racing besides the occasional street challenge by whatever idiots challenge me on the streets.

I have driven the mustang many times and I find that it is considerably faster but it doesn't handle as well as my Prelude. I guess this is expected since its a V8. I love my prelude but from what i know or think i know it would be a lot cheaper to mod the mustang and get more speed.

Please correct me if I am wrong but I have read on several locations on the internet that in order to get the H22A to have really good power I would have to get the engine sleeved in order to handle the high pressures of a good turbo. I am talking 20+ psi. So this would cost me $10k+ to get it sleeved with new pistons and get a good turbo/intercooler installed with a custom tuned ECU. With the Mustang it would only cost around $5k-6k for a twin turbo/intercooler setup. That is considerably cheaper although the mustang has the stock suspension but my prelude has had the entire suspension replaced with a drop kit and sway bars.

Any advice would be appreciated.  

That's a pretty interesting situation your in.  Mustangs have naturaly poor handling, its not the v8 that makes the handling poor.  I have an 88 iroc z28 camaro with a 5 liter tpi v8, with stock suspension and it handles better than my 93 prelude h22a vtec with sway bars and coilover kit, but thats because the wheel base is about a foot wider than the prelude. If you've got 10k to play around with you should keep the prelude and possibly look into swaping your h22 with a pre built motor and save yourself a lot of trouble. Lose the auto transaxle, get yourself a built 5 speed with a stage 2 clutch kit.