Hey malone, since you live in BC, correct me if im wrong, parts shouldnt cost all that much for a 1.6td.
When i did my rebuild it cost me $700 in parts and $about $700 for machining.
$700 parts from VM Autohaus (
http://www.vmautohaus.com/include):
-.020" over piston and rings
-crank bearings, intermediate shaft bearings
-top end seal kit and bottom end seal kit
-front gas engine mount
-valve guides for head and some other things i cant exactly remember
and machining for $700 was at dunrite performance in langley. $25 a hole boring, polishing crank, cam, intermediate shafts journals, plain deck, and rebuild head
the guy there did an awesome job, and is one of the only shops i found close to me that had the right size boring bits for vw blocks at a low price.
I remember Canada Engines quoted me $2000 for this job.
anyway i know my parts list is not exactly complete and the prices are approximates, but VM will give you a quote, and they are the cheapest supplier of vw/audi OEM parts around, and so will dunrite.
also since you didnt mension anything wrong with the head, the head was the majority of the machining cost. So you'd get away with it cheaper then me. When i looked around for an engine i was in ur feet, either buy a used one or rebuid mine and get a new engine, so choice 2 ruled in this case.