1. Install quick release fuel fittings. After experiencing the convenience on my Ducatis, I have installed them on every bike I own. An absolute must since you will be constantly removing the tank to access the carbs.
2. Derestrict the bike.
3. Replace the exhaust--more for weight than power.
4. Sort the suspension. Either respring and refresh the original suspension or upgrade it with new equipment. Have a professional set it up unless you know how.
5. Get your favorite sticky tires.
6. Make sure your brakes are sorted. After 20 years, you probably need to rebuild the calipers and master cylinder with fresh seals, but at the very least install new lines, fresh fluid, and pads. (I like Motul RBF600 fluid and EBC HH pads.)
7. Get lightweight fairings and use quick release fasteners everywhere possible.

I can't answer the steering damper question. I have one, but it's on the lowest setting and I get the feeling it isn't necessary. Then again, I'm 110 kg and haven't used it on the track yet. Plus, you don't know you need one...until you need one.