Definately suspension first.
We ran totally stock showroom spec (2005 Monster) suspension at Cadwell and I thought it was very good actually. The rear was a bit soft (but nice) and I did deck the pipes out, but that can be dialed out.
As it happens, Chass has put the Ohlins out of his 916 in it now
I wouldn't think you'd tell the difference between Ohlins and a standard shock, that's not a dig at you, I wouldn't know unless it was very bad.
I would just spend money on tracktime and when you're held back by the suspension (and you'll know) then buy suspension upgrades.
I don't think a PC3 makes that much difference.
Our bike out dragged bikes with more toys on, and it's only got an air filter and end cans.
Try harder
[Edited on 4-4-2006 by domski]