I have a 90 jetta wolfsburg with a 1.6TD. It has a 1.5 solid lifter head on it. Last winter the timing belt skipped off and slammed the valves into the pistons, so I got the above head off a car in the junkyard for 50 bux.........
The car started easier initially with the smaller cc head. This summer though engine is getting tired. It starts on 2-3cyl and smokes white on cold startup. Even when it is still warm I need to glowplug it........It smokes like "uncle bucks" car when I drive it under heavy load, and it is a dog.........it still gets decent mileage though......
I got a best of 48.5mpg with it this summer to and from work 50 mi per day.......................now its in the high 30's low 40's
The car is still in decent shape with little to no rust. The paint isnt the greatest, but like I said its a work car that I depend on. (the damn door handles suck!!!)LOL So I dont want to get rid of the car.
I dont know what to do right now. I see low mile 1.9L engines with a high ratio trans on ebay for 2700ish. I thought of a complete swap................
Part of me thinks I would enjoy rebuilding this engine more as I am a Mechanic for a living.
So, dollar for dollar what is the best plan of action?

?

I also plan on adding an intercooler either way, the pump and injectors have been recently rebuilt. I have the fuel screw turned up some too.
I will need a complete head for sure, and a set of bearings/rings/seals........where do I get an overhaul kit, and what type of "NEW" head is the best deal?
My turbo is still tight, my alt is new, and my starter is new too.
Is a 1.9L worth the extra trouble for a work car???
Does anyone know the difference in trans ratio's for my car VS a 3.66-.74 5th trans?
I have more questions, but I will take it slow.
Thanks
Ted