I just recently put a new 1.9 head on my 1.6 TD. I wanted to use the metal 1.9 head gasket on mine badly, but that one oil drain back passage hole in the head gasket just interfered to much will the coolant hole in the block. So I did the next best thing, found a Goetze fiber head gasket made for the 1.6 TD and made an aluminum plug with an interference fit, mixed some JB Weld and pressed it into place. The plug I left sticking out a 1/16", then I put it on the mill and resurfaced the head. The set up worked great! As far as the intake goes, the 1.6 TD stock intake, depending on the head and its castings, the intake ports wont line up at the top of the "D" port. On mine I had to weld the top part of the ports on the manifold and port match it. Other than that the 1.9 head works awesome, 2mm larger intake valves, 7mm valve terrain, and on top of that I did some radius and bowl work on the head, tappered the valve guides,3 angle valve job. It runs alot stronger now.
I think the aluminum plug in the head and then machining flat is good if putting a hyd head on a solid block using the solid lifter head gasket, but it doesn't solve the coolant channel issue if the metal (hyd) gasket is used. The hole in the gasket for the oil channel is large and actually extends from the coolant passage to the outside of the block where the hydraulic block has the added channel in the casting. If wanting to use the metal gasket you are still needing a way to block that channel. In another thread someone suggested using a piece of metal gasket to fill in the hole. I would want to make sure that the piece completely covered the coolant passage and that there wasn't a seam on the passage. If there was a seam running across the passage (it looks like it would land there) then I would enlarge the hole in the gasket and then enlarge the plug. I haven't given up on the npt plug idea either.Andrew