Try a bottle of 10K Boost before stripping down the engine. It's £25 for a treatment, but it cleans out all the coke deposits that have built up in the engine and will restore a good portion of the power lost because of them.
Your Punto sounds ace, although before you shell out on the NOS kit, it might be worth thinking about a full exhaust system and manifold and an ECU remap. It might cost a couple of hundred quid more, but you get a constant, more useable increase in power and torque, and you don't have to pay for a refill when the bottle runs out.
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