Is this a td or na? WHat do you have for a transmission in it, 4 or 5 spd? WHats the code.
If you broke the t-belt chances are you will need new valves. If that is the case, your already into it so do new valve guides and have the seats recut. Hand lap them in for a perfect fit. I am assuming this is a mech block. If not, change out the lifters if they are original, they have done their duty. Replace all the seals / gaskets when it goes back together. Use new head bolts. Measure correctly for piston projection and use the right head gasket. A aaz 1.9 head gasket will work and is a superior head gasket.
Are your injectors original? How many miles on them? If you dont know, replace the nozzles and have the opening pressure (pop pressure) correctly set by someone who knows what they are doing. You can try Duane from here on the forum, he's cheap and will get them done correctly. New injector heat shields, buy 8. new glow plugs. Test the before they go in, even if they are new. Search "Pimp and glowplugs".
You could gasket match the intakes while the head is off. It will help a little and cost you next to nothing.
Lower end---is it tight? Do you know what the compression was before the t-belt broke? Inspect the bores, is there a lip at the top? how do the walls look? Everything still look good? Run it, hone and re-ring, or bore and new pistons. All depends on condition. If you end up pulling the engine, you should replace bearings-crank, conrod. Pull the IM shaft while the engine is out and replace the IM shaft bearings, they always go bad when you can not get to them, in winter, when it's snowing :wink: . If you are doing the IM bearings, go ahead and have the IM shaft turned to true it and cut some weight. Not much of a performance gain but it will smooth things out and is very easy to do while it is out.
Oil and water pumps should be checked out carefully. You may want to go new if the whole thing is apart.
RUn a cold air intake if you can. It will get you a little more and is cheap.
Lighten the flywheel if it is out.
Hows the pump? Any leakage or seeping? Reseal. You can do it or there are guys on here who can do it for you. I think libbbapa does them.
If you are after miles, research and run a higher ratio tranny, or do a 5th gear swap. CHeck out sciroccogears for ratios and brokevw for 5th swap info. Run a set of tires and rims to put your rpms in the best spot for your cruising speed.
Get the correct timing tools or get with someone who has them. Set the timing correctly when you do the t-belt. Do not wing it.
My drink is now empty so I am done typing. I figure thats about plenty. Someone else will probably have some other good info for you as well.