rover v8 only kixks out about 150 stock....nice sound effects though! lol

Ok, well it all depends on how serious you are and what you want from the car...

VR6-

If you want a WOW factor at shows when you pop the bonnet and a nice noise then a VR engine is for you. It is a very strong engine and easy to maintain yourself but most engines over 100k on the clock are trouble. The Timing Chain tensioners, guides, water pumps, oil pump, Crack pipe, and much more are mega expensive to fix and are a common problem with high milers. Also the VR engine is very underpowered in standard form (172ish or 190ish BHP on later models). The VR can be brought upto around 230ish but with major work and LOTS of money and although it be in a light Mk1 Golf the car will handle like a boat and be no good round corners. The VR block is big and the sump sits very close to the floor, so lowering the car too much is a no no unles you want to spend over £200 on a new sump each time you smash it.
Also the VR uses a cable change gearbox and Hydraulic Clutch, so a modified Pedal box would need to be made up and a Clutch master cylinder from a Corrado or Passat to retain the gearbox. There is a way of converting it to rod change but i wont go into detail here.

I have just been involved with building a VR6 Polo Mk4 (6n shape) and it is not as good as you would think. If i had to do it again or a Mk1 Golf then i would consider using the 24v engine as appose to the 12v VR.

1.8 20valve Turbo -

Quite a common conversion in Mk1 Golfs these days. Engine and parts are readily available in many forms ranging from 110bhp models - 225bhp models. Engine is much lighter than the VR and much more easier to tune. Handling wouldnt be effected too much and the engine sits neatly in the Mk1 bay compared to the VR which sits very far foward.
You may have the same issue as the VR as regards the Gearbox as i have a funny feeling you will need to use the 02a box and clutch (same as VR). I could be wrong though and i will double check tonight with my mate who has a couple of Mk1 20VT Golfs.
Any more than 300bhp will be pointless in a Mk1 as the car is far too light and even with 250bhp the car will spin the wheels in 1st, 2nd, 3rd and sometimes 4th. *(talking from experience)

Now for the engine i would recommend.....

2.0l 16v ABF engine from Mk3 Golf-

This engine is perfectly suited to any mk1 or mk2 golf. Easy conversion, and the engines are so easily available. I would even go as far as saying this engine in a mk1 would out pace a mk1 VR out on the track. By using this engine you would keep the box it uses in a Mk3 Golf (rod change) so would help a whole lot in ease of installation.

Have you even thought about putting Motorbike Carbs on your original engine or even upgrading to a 1.3 with bike carbs?

Wow, thanks Si! A lot of the points you made had occurred to me, but loads of really interesting facts in there. Basically i want to run the car every day to work, which rules out major mods, ie the simpler the conversion the better. If i end up with an injection car i would rather fit the system and ecu than replace with carbs as they will require more regular setting up and maintenance. Much the same applies to going with bike carbs on a small block lump, great look very trendy and sound awesome, but the neighbours won't thank me at 3am when i'm off to work!

I've just been offered a 1.8 16v mk2 engine and box, i guess this is a similar conversion to the gen 3 engine. If i could fit one of these, running a simple straight through exhaust and induction kit, that would be all the power i need, and give m,e the kind of turn key reliability i'm looking for in the car! Lookinf around the net, this is a very common conversion so should be easy, and lets face it anything will be an improvement on the stock 1100 thats in it at the moment!

Yes a 1.8 16v conversion is simple and cheap as chips too. A the valver lumps are awesome in light weight cars. If you need any more help feel free to ask.
Si

Thanks again Si, you're a star! Gonna look for a whole donor car, and rape it for all it is worth!, will get a cheap mk 3 5 door if i can, or a mk 2 failing that. wanna run the engine stck and retain the stock looks of the mk1, in a kinda street sleeper style....

Gotta focus on the t4 this weekend though, taking it to Barcelona in 3 weeks and its hanging....