Dont worry, we can rebuild it, we have the technology...

VW's are actually one of the easiest brands of cars to get back in tip-top shape if they have been neglected- Most repairs are easy and barring any serious engine/transmission or body damage, usually inexpensive.
That being said- back to the axles. Ok, you've probably done this, but get it back in the air, and grab the top and bottom of the wheel. Try and shake it, using in-and out method with your hands. No movement? Good. Skip down a few lines....
Movement? Check and see what is actually moving. Look behind the wheel where the spindle connects to the ball joint, shake again. The ball joints are shot if you see the spindle move at all. If the spindle doesnt move, then all that's left are wheel bearings.
Now, on to the axles. With the car lifted, grab an axle with both hands and shake it hard. If it moves much at all, good chance the CV joints are shot somewhere. It's not really worth messing with to just change the joints, just buy a new axle at your local parts monger. Figure 8ths arent the best way to test if the car is making noises elsewhere, but you notice vibration or any sort of sound that only happens when you turn the wheel and drive, the CV's are probably the culprit.
Good luck, happy testing!

Brendan
84 Scirocco 8v
00 Camaro L36 M49