Let me ask again. Will a 160 degree thermostat and a re-programmed computer/DiabloChip help? (Keep in mind that I live in WI.)
If you really want more power and performance, then why don't you just trade that car in on a 2.5L Contour? Why put thousands into a 4 cylinder engine to make it still come shy of a stock 6 cylinder? I never could understand that concept. If performance is your goal, then you naturally would start with the biggest engine offered by the manufacturer as a baseline to build from.
But if you must try to squeeze water from a turnip, then know this:
The thermostat on a car does NOT effect the running temp of the system. It only controls the MINIMUM operating temp that the system can run. Cooling fans (switched by computer) control the normal to max temp. My car has factory thermostat and it ALSO runs in the R - M range just like the guy above in this topic who has 160 thermostat installed (there's the proof). If you wanted to alter the operating temp to run around 160, then you could get the adjustable fan controller thermostatic switch from Summit Racing Equipment. It has it's own radiator mounted temp sensing bulb. It would control the fans independently from the computer. That used in conjunction with the 160 thermostat WOULD lower operating temp, BUT then your right: you WONT pass emmi9ssions because computer will stay in warmup mode (as SVTDemon stated) w/ richer fuel mixture. Also keep in mind that fuel economy will suffer as well if engine is not operating within it's normal temp (possibly even worse mileage than the 2.5 V-6 option normally gets?)
Also, this whole computer chip thing is really iffy cause I've tried chips before, and any gains (not noticeable from seat of your pants feel), do cause car to fail emmisions. And the gains are really argueable, as I didn't notice any worth mentioning, so I put the stock one back in.