BTDT! (Been There Done That)
You have many options of varying cost

If you look at the discussions on www.s2forum.com the preferred upgrade route is the RS2 (KKK K24 7200) turbo. It uses a K26 #6 hot side with a K24 compressor housing but has a K26 wheel fitted to it! It is good for 380 hp and is a very easy upgrade. For 380 hp you would need a good exhaust (3"), RS2 EM, RS2 or 7A cams, RS2 IM, RS2 injectors and a good remap. With just the RS2 turbo and a remap you can get to 300hp.
The RS2 turbo bolts on to your EM and the water and oil feeds fit directly. It costs R18000 from Audi or you can buy the exact same brand new turbo from the KKK agent, Turbo Exchange, for (wait for it) R10,000! I sold mine to a urS6 owner and it took him an afternoon to fit it. BTW I sold it for R5000 but since there are only 15 RS2's in the country I doubt you will find a second hand one locally. Maybe overseas?
The next step up is to go for a roller bearing turbo. I replaced my RS2 turbo with a hybrid setup. The turbine housing is a K26 #6 (same as RS2) but the compressor housing and CHRA are Turbonetics T04E (46 trim) roller bearing. It should have much less lag than the RS2 but is good for 420 hp. The turbine housing will be a straight fit but the oil and water feeds are different - Geoff Mortimer is currently busy sorting that out for me. The price of the turbo is about the same as a new KKK but it is more effort.
The mother of all turbos will be a double roller bearing Garrett GT turbo. You would need to get a KKK K26 #8 turbine housing (used in the Porsche 944 Turbo S aka 952) and then you can use the GT30R compressor housing and CHRA. It will spool up even quicker than the single roller bearing turbo (full boost below 3000 rpm) but will cost about R15000.
Email me at gandalf@audiclubsa.org.za if you want to go the roller bearing route. I can put you in touch with the right people.