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First of all I need to say that I am not expert and these are only my interpretations, not necessarily fact.
The red line change was needed with the change in engine size (2.0 -> 2.2). I believe that is how they increased the torque- more displacement and less RPM's. The difference in the tranny was to compensate for the different engine output and characteristics I would guess.
As for the suspension, many people thought the rear end was a little 'jumpy' and would come around on people so by softening the suspension, oversteer was more manageable. I have never had a problem myself other than at the autoX course or when I changed to a larger rear sway bar. That was an expensive learning experience.
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Happiness is a nice road, great weather, and driving the S with Sue in the seat next to me.
"Whatever you do, where ever you go, enjoy the drive."
I know for a FACT that the last year of production of the S2000 is 2003!!!!!
After that, it will be the S2200 under an assumed name.
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