I've just changed my MK3 over to an 02A, much easier to work on than an 020, as far a taking it apart and changing anything internal, in my opinion. However it is a lot of work to change everything in the car over to a cable shift. As listed above all need changing, I kept mine a cable clutch, as I found that much easier to do than pull the pedal assembly. I'm just finishing mine, it's with a 1.6, however its a passat 02a with a final drive of 3.944 so I think it will match well for city and I changed the fifth to a .681 so highway driving should not be terrible either. As per one website (forget which) my revs in fifth will be lower than the 020 with 3.667 final and a .75 fifth. I do a lot of driving that is 75 mph or better tho, which is why I went for the 02A setup.
Burn_your_money, what turbo/mods do you have? My AAZ is pretty much stock with a k03 and I feel that it loves the 1500-2500 rpm range with this transmission.
One other note, with the 020 I had steel ball fittings(not the oe plastic connections) and the shifter was nice, solid shifts and precise shifter feel. I decided to go with a dieselgeek (or other would work) short shifter and MK4 ball type cable shifter(newer M4 shifter). Feels just as precise and I would recommend using this if going to the 02A. Just $.02