The ALH is best for a durable m-tdi. Aftermarket parts are easily found. The block is much more robust than the AHU/1Z, as can be seen from the extensive reinforcement in the casting.However, the passenger side mount is completely different on the mk4 engines vs. the mk3 engines. So you would need to fabricate that mount.
Well I would never bolt a alh to an 020 trans. That's like buying a Ferrari and putting Canadian Tire brand tires on it. Ok, maybe not that bad. I'd definitely recommend a better than 020 trans with a performance build ALH. Although I do think someone on the vortex did an ALH swap into a Rabbit and used the 020 trans without issue.
What's wrong with the 2.0 020? That is what I have... but I also have a AOP trans from a 87 or 88 jetta diesel too.Right now, very little beatings. When I get a proper trans, some track use. I know what kills the trans is the torque at low rpm before everything is meshed together.