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I recommend the Insight. It's great having a hybrid system to stop and restart the engine, recover a little energy on braking, run the 12V charging system and power brakes even with the engine off, and provide a little extra acceleration on the rare occasion when 1.0L isn't enough.
I suspect that many of the mods you'd do (and many that you couldn't afford to do, like replacing steel components with aluminium and plastic) to the HF are already done to the Insight. But if you're looking for a project car, the Insight still needs a few aerodynamic tweaks, and a few electronic mods to tame the hybrid system.
You might want to check out InsightCentral.net.
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