Late to the party on this one, lots of good info/guidance so far but let me see if i can help you out. For reference my buddy and I run an Escort GT in SF up the the Detroit Region under the "Team Effort Motorsports" banner https://www.facebook.com/teameffortmotorsports/?fref=ts
1) Strip all unnecessary weight Yep, always a good idea
2) Strut brace, probably home made meh, not going to hurt you here but won't be a big difference maker either. There are other things more worth your time
3) Skid plate Not a bad idea but new shocks/slightly stiffer springs should keep you from dragging anything unless this car has some low-hanging accessories
4) Port and polish not worth it, spray some carb cleaner down there if the parts are gummed up and call it good
5) Cage, probably a simple four point. We have access to a bender and will make this ourselves a simple 4 point cage will add weight, but it woudl also be nice to have a harness bar, plus it does add a modicum of safety in case things get tipsy. I'd go the middle-route and just install a harness-bar if you can't attach harnesses to the rear parcel-shelf
6) A decent seat with bolster support and harness, probably an expired set from a drag racer friend.yep, good idea
7) We kicked around the idea of welding the diff, is this a good or bad idea? This car doesn't have a title so it doesn't see any street time. it can work but you have to adjust your driving style accordingly. Basically you drive a welded diff car using LOTS of throttle and copious amount of left foot braking. it can be fast if you know how to drive it, but also sloppy because that style of driving usually involves hitting a lot of cones
I'm basically going to echo what Pete (knurled) already said here;
Buy good shocks (KRB GR2's are always a safe bet)
Buy good tires (Firestone Winterforces or General Altimax Arctics are great choices if you don't want to spend for rally tires)
Make sure the car is in good working order (fluids are fresh, no loose/broken suspension pieces,bushings are in decent shape, motor runs well, not broken/worn motor mounts, brakes function properly, etc.)
Go party, wheel time will help you more than anything