Whilst the rad was removed on my ZX I noticed the sponge padding that's around the base of the intercooler pipes.... now what's the general concensus about removing this? Would it allow the engine bay to release heat a tad more? eitherway I don't see any benefit of keeping it there?

To be honest, the amount of sponge that is around those pipes is minimal and the ammount of heat that would transfer out of the system with this removed will also be minimal. The sponge itself can also act as an insulator, protecting the system from heat, but there's so little of it I don't think its detrimentle to the system, I removed it from my car as it was all 'tatty' and have not noticed any increases or decreases in power. By the way, nice looking Zed mate.

removed mine too i only done it cos i have a spare set of pipes but i aint noticed any difference.

I thought the reason for the sponge is as an insulator on the hoses to help limit heat transfer to the air intake as you are trying to keep the intake charge as cool as possible. Thinking remove it and the engine cools better is not that clever in that case! It just would mean more heat gets to the intake air that you are trying to keep chilled!

Its there to ensure all airflow from the front of the car goes through the radiator rather than round the sides ;)