yea it's actually quite the process... the block has to be machined to accept the sleeve, and then heated up, while the sleeve is super cooled. that way it will be a really tight fit. i think that is how they do a 'dry liner'. the wet liner process involves using o-rings and from reading on the site, seems that attention to detail during the whole process is the key to success.
i think its best that you consult a machineshop local to you and ask if they've linered engines, and the results, and of course the price. in some areas, this route might actually be cheaper than locating a motor that doesn't already need a rebuild.
the best part about going the liner route, would be re-using the old pistons if they're in good shape.
the liners themselves are reasonably cheap if you buy from the
www.dieselvw.com site.