One thing I'm starting to note on the mk3's I own is to remove the driver/passenger interior sill trim panels (where the pretensioners are on some models) and unclip the carpet enough to take a peak for water ingress/rust (you can slip your hand under the carpet/under-felt to feel for sogginess - my hand didn't come away dry in my new 1.4, nor from the 1.9 either!).
Also mould on the inside of the grab handles and sun visors is a good sign that the car has been getting wet inside.
As for turbos, this thread is interesting:
http://forums.vwvortex.com/showthread.php?5021638-1y-to-AAZ-gt-130-hp-goalAnd my own personal backup of various threads from accross the web:
The turbo version of the engine is called the AAZ.
Provided the 1Y has D/TD stamped on the back of its engine block then it is the same internally (almost) as the AAZ.
There is no gain in-speed, however the engine can cope better with going up hill and maintaining high speeds.
Follow the AAZ fitting guide (below parts list), mine had the JX 1.6TD . I checked that the engine had oil squirters on the bottom of the pistons, and had 1.9D/TD stamped on the block.
The following parts are required to be fitted for a turbo to be added to a 1Y engine:
new 3 hole head gasket (due to 0.5 difference in compression ratio (CR).
new crank pulley bolt
new timing belt and tensioner
JX inlet manifold (roughly ported)
JX exhaust manifold and turbo
AAZ pump and injectors
bit of fettling with water pump/alternator setup
oil pickup and pump from JX as well as sump
oil return turbo-sump from JX
Also can fit worry clocks so as to check on oil pressure/temp/boost.
The turbo bangs really hot oil back into the sump, which is then picked up and into the engine... I fitted a front mounted oil cooler which really helps, simon sells a wicked kit at brickwerks.
A real bonnet scoop to get more air into the engine bay with heat exchange to the turbo oil pipes (PC cooling kit) may be an idea.
AAZ Fitting Guide:
1.6TD (JX) to 1.9TD (AAZ)- http://www.brick-yard.co.uk/VehicleSpecific/T3/info/mods/aaz.htm#problems
Strip AAZ to bare engine, head and block, good time to replace cambelt and tensioner and check crank pulley and crank for wear.[see note]
Fit JX sump and oil pick up pipe without windage tray [see note]
Use AAZ injection pump, modify throttle linkage.
Use T3 Diesel (CS,KY, JX) throttle cable.
Small hole in engine lid, probably about 15cm's by 10cm's and about 15mm increase in height.
Use JX exhaust manifold.[see note]
Use JX exhaust.
Use AAZ turbo, change attitude to suit JX exhaust manifold.( you can use JX turbo if required)[see note]
Manufacture oil feed pipe for turbo.
Use JX exhaust and mounts.
Use T3 Diesel clutch.[see note]
Fit spigot shaft bearing to crank (Part of Brickwerks kit)
Fit block bung to back of cylinder block (Part of Brickwerks kit)
Fit "Cut to length" Oil return line from turbo to sump (Part of Brickwerks kit)only for KKK turbo's, not Garrett)
Use JX airbox and piping to turbo, relocate airbox to behind LH light.
Use JX water housings for cylinder head.
Use AAZ waterpump to head rubber hose as the JX one isn't long enough, block the spare end.
Use AAZ inlet manifold, JX and AAZ ports are different shapes, if you match port the JX manifold to suit the AAZ head then in my opinion you aren't left with sufficient material to create a good seal.
Use which ever alternator/belt set up suits you, they are interchangeable.
Use (KY,CS,JX) Dipstick [see note]
Forum quotes:
brickyard-mrhutch.
----
My engine is a 1Y block (stamped 1.9D/TD) with the squirters, 1Y head, JX turbo and manifolds, AAZ pump and injectors. Front mounted oil cooler and simons' boost pin on the LDA. As far as I know (and i'm no mechanical expert) the 1Y can be blown as long as you don't go mad, mine boosts to 0.7 bar
Done about 10K miles so far, no major issues and really happy with the lump.. crusing at 70 now not a problem and no changing down on hills.
Any info you need PM me !
brickyard-rolo
----MMMMust use oil cooler .I was never happy with the long run to the front and combined the addition of a rear facing straight thru bike can (surprisingly quiet) by replacing the silencer with a Range Rover V8 cooler, put a mini fan on the crank and ducted it by modifying the original silencer cover. Mr Hutch on here put a turbo on his 1y and used a thicker head gasket, aaz pump and injectors. He is v happy and has done alot of miles. Just do it
Can you tell that if I had the money/expertise I'd quite like to do this to my 1.9D

Oh, and the 1.9D is said to run great on straight vegeatable oil - also tempting (though some consider it madness

).