RE: shocks with hydro at the front
Basically the shocks just reduces the lean at the front end when going around corners. Overall effect is to stiffen up and stabilise the front end, the shocks don't do much work when installed on hydro car but make a world of difference to handling. It's less squirmier through the corners.
RE: lowering hydro
IMO it's not needed. The worste way to do it is by reducing fluid in the hydro system. Even any other type of lowering screws up the geometry of the car. All i know is when my car was lower, it handled pretty bad. The hydro should be pumped so that the wheels sit 3 fingers from front guard. IMO lowering hydro makes bugger all difference to handling and in fact makes it alot worste. It just "looks good" but honestly I think a lowered mini looks crap

they look way too dumpy lowered if you don't have big 13inch wheels which is another story altogether
Besides, minis are low as it is. Don't follow the ricer crowd
Just set it up like this:
Competition bump stops in the rear, ~$75 from karcraft. Go to pick n payless and get any front clubman shock brackets along with the shocks. Don't need fancy shocks, just standards as they do bugger all work in the front. Once all this is installed, flush the hydro system and pump it up to 3 fingers at the front. Take it for a fang and if your tyres squeel at 80km/h around the corners, time to save for real Yoko rubber
Honestly any faster and you will need racing slicks to keep the car on the road through corners as that will be the weakest link in the suspension. You may also need to think about bucket seats as you will fall off the standard mini seat around corners

I've had mine set up this way for 2 years with crappy tyres and still have been very satisfied indeed
