AND WHY THE HELL HAVE I NOT SAID HELLO TO A FELLOW VIRGINIAN YET?!?
Hey, I;m the 'Crazy Andy' *mike* CRSMP5 mentioned, and I am building an AAZ to put in a MK1 right now also. Thought I'd verify some things:
1. The OEM turbos you are looking for are either the K24 or the VW 1.6TD-spec T3. Both fit the stock 1.6TD exhaust manifold. The best of the two is the T3, since EGTs don't rise nearly as heavily as the K24, which will see EGTs rise as quickly as the boost (but still be manageable if you have a good IC). Another good thing about the T3 is you can swap it's stock 35 trim housing for a more efficient 40/45 trim housing off of a volvo 700 series T3 (don't remember which year or engine right now off the top of my head, and I don't know if Trev0rbr will either). However if you wanna go large out of the box, then get that Holsett; It will be on my list if I ever go mTDI.
2. I elected to go with Raceware main and head studs, which are really no different from ARP onther than they were a little less pricey at the time of purchase. As far as the rod bolts, the OEM stretch bolts hold up well, and everybody else is right in saying there aren't any aftermarket alternatives.
However, considering your goal of 200 HP, you should probably consider a bearing girdle (
http://www.youtube.com/watch?v=54s_jyjMUxY). This will keep your mains from dancing around under full power.
3. Frank Irving of "Frank's TDI"? Good call, sir; you've done a lot of research! Will you be doing any porting yourself? I take the crank sprocket walked and you experienced piston to valve contact, but Frank can fix that easily.
4. You probably already know it, but CHECK YOUR CRANK NOSE AND GET IT D CUT! I WILL SMACK A B!
5. Another thing on running a lot of HP in a diesel is that you get a LOT of torque, far too much for an 020. Seek out an 02A/02J like I did, and run the corresponding flywheel. Don't get a lightened FW, since diesels use the 'wheel as a idle dampening device. Your car will shake itself apart on a lightened flywheel, and you're in a MK1 (as am I) so that'll make your dash fall off in a week.

6. Find somebody local to do your exhaust, and don't buy something from TT; too much money for what some welding friend could do with tubing and turbo flange for a DP, with your Friendly Local Muffler Shop
TM taking care of the rest. I suggest a Thrush Turbo muffler at least; step-brother has one on his turbo'ed car-that-rhymes-with-Fonda and sounds nice and mellow.
7. Have you given thought to a higher-flowing intake? I'm gonna fun a PD150 manifold myself. I know it's not the most ideal, but the larger plenum and intake ID is better than the stock AAZ mani log. Search around the side, there's a lot of customized manifolds folks run, from 1Y srolls to gassers to full custom welded; look at intercoolers right now so you can know what you want to go with when you really hop it up later. 200 HP is not gonna flow through the stock manifold, no sir.
8. AT LEAST 90% of what Theman53, Trev0rbr, 8v-of-fury, and CRSMP5 say is right. The other 9% you fact check only to find out they are still right.

Ribbing aside, take advice from what folks say around here, because a lot of folks here have been doing this for a loooong time. This isn't the Vortex, where BS, drama, and nut-swinging is the name of the game; here we try to talk facts. But with a good proper amount of humor too. Hell, you should see the General section.

If you find yourself in central VA around UVA/C,ville shout out w/ a PM. Hell, just shoot me a PM! You're only the THIRD Virginian here, and it's lonely without any locals. If you need any parts or info help on fairly recent stuff, I'm a VW tech, so I have access to those kind of things. I've also bookmarked alot of the parts I've bought to help me put the 02A in the MK1, so I can give you an entire laundry list for certain things. Again, talking facts. I've gotten soo much info from this site, and I can't wait to give some back.
Hope to see the project soon!
P.S.: Make an intro post in the Ride Wall forum, I wanna see the car. The Avatar pic is just too teasing!!