Forgive my lame question. I tried searching but it did not help much.
I have a 1.6 TD (MF engine code) that does not have the IC at all. I was considering adding the IC from another 1.6 TD (SD engine code).
Any real benefit e.g. power increase? I do not expect much as the amount of fuel fed will still be the same. Is there anything else I should adjust/swap to actually benefit from that IC?
I'm assuming you mean an intercooler from a GTD model. I run an intercooler, from a Saab, and I think there is a difference. Its slower off the line but faster overall.
you dont have to use a "VW" intercooler. any intercooler should working assuming it is sealed or massively over sized.
with an IC you should be able to increase the boost and get a few more ponies out of it, assuming your not out of the efficiency zone of the turbo
Any real benefit e.g. power increase? I do not expect much as the amount of fuel fed will still be the same. Is there anything else I should adjust/swap to actually benefit from that IC?
Time to do some reading.

. With out changing the fueling or touching anything other than installing the inter cooler, you will have a much much more efficient engine. You should notice less smoke, and cooler temperatures. NOW, turning things up.. you will notice it for real.
You should be able to turn up the fuel before having to touch the boost, sure your waste gate will open at the same spot but the power from 0psi-12psi will be great. Having a working waste gate is also a very good thing to not over boost it.