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Since no one else has posted i'll put in my 2 cents. I don't know how true this is just a guess, i'm not a big toyota guy. Looks to be the same engine in both cars, block that is. I would guess that the comp. in the XRS is higher then in the S. Which would leave me to believe that it is a higher tuned engine, obviously. Now I am make a parallel, no flames, think of the S2000, it is so highly tuned that it is very hard to get added power out of it. By no means do i think a XRS is anything like a S2000, I believe that you should be able to get good power adds on a XRS. But that is the only angle I can think he is going at.
 

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i dont wanna be mean but youre friend is an idiot. my parents used to own a corolla CE which is same engine as the S. it wasnt very fast just really good mileage. the XRS is much better. it comes with a 6 speed too.
 

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also..."potential" can be nullified with money.
Like the example with the S2000 someone mentioned earlier, simple bolt ons for it only yields minor gains in power. But with money, you can get it tuned with FI.

The XRS is probably a great deal compared to the S model. To make up for the 40hp difference you probably have to go FI or spend a pretty big coin for it. That difference could have bought you an XRS, but remember the XRS also has suspension improvements over the S model.
 

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The engines are completely different. The Xrs has a 11.1 compression, and a thing called lift, which activates over 6200 rpm on the Corolla. And a redline of about 8200 rpm on the Corolla. The code for this engine is 2zz. The lower horse one has 10.1 compression. Which it's redline is about 6400 rpm. The code for this engine is 1zz. This is a more potent engine. It has a longer stroke. with better hi-po gain with a turbo and other parts. Like you honda guys with the Type-R not being available in the states. The toyota crowd has a Motor called the 3zz. Which consists of 2-zz motor,and a 1zzcrank. Apparently 300 horse is no problem. Check this car out it has the 1-zz motor:

http://monkeywrenchracing.com/mwrmr2_s.html
 

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well IMO its better to start out w/ an engine that has more hp .. xrs mite not respond well to normal bolt-ons but i'm sure there are other ways of getting the engine to wake up ..beside xrs came w/ better options (i.e. better suspension, bigger wheels, etc..)
 

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The XRS has a detuned Celica GT-S engine, it is witout a doubt the better more potent engine!!! The 1zz is like the B18B...lower compression, less agressive cams/overlap and turbo friendly.
Celica 2zz = 180hp @ 7800
Corolla 2zz = 170hp @ 7800
 
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