I'm planning a "built" 1.9 TD for this winter and I was wondering what y'all do to address any weaknesses in the stock transmission? Is there a stronger transmission that I can use in the Mk 1 chassis? Is an LSD necessary? I assume that I should replace my 90mm axles with something larger, but what else? Any help would be greatly appreciated.
i think your axels will be fine, i dunno what all transmissions are better, but i think the later trannys, mk3 020s which will bolt right in are a little stronger, also 16v trannys (bolt in) are supposed to be strong, but generally they have short gears, which really won't mix well with a diesel, especially not a 1.9, you could also consider an 02a tranny, everyone seems to say they are very strong, but it requires some work since they have a hydraulic clutch and are cable shift
Stewardc, you might want to call Jack Lowe's Automotive in Cambridge, NS and talk to Chris. He often has spare trannies lying around and can put together something with a taller 5th gear if he has the pieces lying around. If you are too cheap for a peloquin TBD like I am (not that there is one for the automatic) check out the 80% kits he sells they are a very affordable traction aid.
Chris even has a 2 wabbit pick ups there now!

1 is mint from the southern states and the other needs a bit of love, but both will have 1.9TD's in them soon.
Jack's number is 902-538-1486, Chris is the guy you want.