Q: Can I get more torque out of the 1.3S engine over the whole rev. range, while still maintaing the excellent drive characteristics for daily traffic?

A: Without going into wild tuning modifications you will not vastly enhance the car power. The engine is already highly tuned in terms of design and components. My personal view is that you will greatly benefit from electronic ingnition (something which Lancia fitted to S3 cars as an optional anyway; few people are aware of that!) while retaining the points.
If you are lucky you may get the original Marelli ignition module (although this is quite a bulky item).
Dellorto carbs will largely improve smoothness and throttle response. The only problem is to find good Dellortos nowdays.
- Andrea -