Rather than spam the board with a dozen posts I'll try and lump all my questions into one....
1.) How much oil is the motor supposed to take when doing an oil change?
I assume one is to pre fill the filter before screwing it on, what is the total required? I suspect my motor is clocked to the left and as such is reading to the top of the fill stick with a grand sum total of 3 litres in the motor (including what is in the filter)
2.) So I popped the crank case vent off the valve cover while idling and am presented with a nice tall plume of smoke (blowby) I guess this is more subjective but at what point does one look at that and say it's too much? or is that the way it is?
I'm thinking I have a ring problem as it's filling the air filter with oil.
3.) what do I need to hook up my tach? (is there a sender on the motor already)
4.) The injector pump is leaking when cold? as it seams to stop when warmed up. It appears to be coming from between the pump body and the cast iron? piece the injector hoses screw into.
What's involved in repairing this? Or am I better off getting it completely rebuilt? Money?
5.) On the valve cover it indicates it had hydraulic lifters. The date code on the head indicates it was manufactured in '85 I am probably mistaken, but from scanning some of the posts here I get the impression hydraulic lifters were not available in '85.
6.) how can I tell if the block was origionally a turbo diesel block (with the piston cooling jets) rather than a NA block? are there numbers stamped on there somewhere one can tell rather than tearing into the block?
7.) Whaddy ya think? should I just bail on this one and take my chances and buy another "good runner" from the wrecker?
1) My 1.6TD takes approx. 5.5L of oil.
3) Tachometers on diesel engines run off of the alternator. There should be a wire coming off the car left side of the alternator that has a W stamped on the alt right beside the wire.
4) You're on the same boat as me here.... It is most likely because of the ULSD fiasco (Ultra Low Sulphur Diesel). My pump is leaking from the exact same spot that you mentioned(as well as a few others).
The O ring that is causing your pump to leak, more than likely, is this one
http://i96.photobucket.com/albums/l163/Op-Ivy/dsc05383.jpgThe rebuild kit seen here has a nice breakdown of the pump. The O ring is the large one at the bottom.
http://www.emiata.com/DieselVW/BoschRebuildKit.htmTo get it fully rebuilt it would probably $500-$1000 CAD. I have got one quote for $700. But I've heard of people paying less on here though. My dad and I are going to attempt rebuilding it ourselves.
For more info on ULSD and problems etc, do a search for it. There have been many posts about it already.

-Matt
removing the pan and looking for oil squirters is the only way that I am aware of for checking the block to see if it is a TD
Look for the engine code at top right side of block just below water outlet and post the code. 1.6L Diesel engines sold in USA and German imports start with MF,JX,JR,CY,IV,RA,SB. all have oil squirters.
Found the answer to #6
Thanks for the reply Op-Ivy
Since I'm using the samurai alt I'll have to come up with something else. I wasn't sure how volkswagen did it from the factory.
If you are using a gas alternator I think you're pretty much SOL since you don't have the W port or a distributor.
found an answer to #5...
Well, the big difference is that the hydraulic ones have hydraulic lifters and the solid lifter ones have solid lifters (I bet you already guessed that much). The difference is significant in that the hydraulic lifter heads have an additional oil drain hole that runs through the head between the #1 and #2 injectors. Externally there is a vertical hump in the casting instead of a depression there in the solid lifter ones. Unfortunately the additional oil return channel lines up with a coolant passage in the block making mixing and matching heads somewhat problematic. Here in the US the engines became hydraulic in '86. It is remarkable to me that VW actually kept the same engine codes for solid and hydraulic motors despite the fact that the engine parts do not interchange.
Andrew
Edit: thanks for the link Tyler I'll check into that,
So far I have made it back to page 14 of the old posts....
TD engines normally need 4.5L of oil with a new filter. You can buy a oil purge from an auto shop and try it on the engine. Maybe it'll unclog it.
3 litres is very low.
BTW, if you don't have a W terminal on your alternator and if you have a soldering iron and you're feeling confident about getting the rusty bolts apart you can easily disassemble the alternator and add your own... it's just a wire from a particular side (can't remember the details off hand but google will know) of the diode bridge.
Yeah some days it's just too much information, ain't it !

My VDO after-market diesel tach came with wiring instructions on how where to add the W terminal on your average alt... darned if I can find them now.
the correct answer is 4.75 liters.....