Thanks for the info on the breather, I have actually been looking at getting an AAZ or TDI setup, so I will keep an eye out for one. No oil leaks as far as I can tell. My car has the plastic engine tray which is dry.
Dakotakid that is reassuring to know there are others like mine! Its not too much of an inconvienience to top the thing up, I check it most journeys tbh , I was just hoping for an engine which didn't use oil from a rather expensive rebuild, I can dream though!
Also I agree that 15w40 should be absolutely fine in these cars, its what they were designed for, I think its a mental thing telling me synthetic MUST be better for my engine than the dino 15w40, but it reality I I'm not sure it is really necessary in the UK weather.
The engine was bored 0.5mm oversize for the new KS pistons, I made sure to check which clearance they used, it was 0.001" or 0.03mm, which I remember thinking was correct, they also requested the new pistons before they would bore the block. The bores were "plateau honed" according to the machinist, as seen in the picture in this post
http://www.vwdiesel.net/forum/index.php?topic=30282.0 However I did not personally measure them after, when I assembled the block.
The cylinder head was a Genuine Turbo diesel cast with no cracks, fully stripped, brand new Federal Mogul prechambers, new bronze valve guides, 4 new genuine exhaust valves, reused inlets, new followers. New Elring valve stem seals were used. However again, I did not see the head being built, so I obviously cannot say the seals were installed correctly.
I'm going to source a breather kit and will get around to swapping in the 15w40