The short story is this:
I have been working on a Track Slag Mk 2 for a while, see
http://www.golfgtiforum.co.uk/index.php?topic=130170.0, and have just moved to Gutersloh where I have found a cheap race series that i could join. Some more info
www.rallyx.de. Due to the rules I want to remain (just) under 120 BHP, to stay in Class C, but must use an engine that was originally fitted to the Mk2 without much modification so head ports, lairy cams, etc are out. So I could use a G60, but that would develop too much power and push me into the unlimited class, not where i want to be just yet!

I currently have a 190,000 mile 8v fitted so am probably struggling to break 100 BHP!

What are the options and which gearbox should I be looking for? Funds, as ever, will be tight but I am willing to do a lot of spannering myself.
Current thoughts are a completely rebuilt 8v which should see about 110 BHP. With a little fettling, by which I mean a little matching of manifolds etc and a free-flowing inlet could be an easy solution. I was also thinking that a 2.0l 8v bottom end with the 1.8l 8v head would release a few more horses without going overboard. It would, hopefully, not be noticed and should sit just under the required 120 BHP.
As for gearboxes I am totally unsure. The track used is part of an airfield and so does not have lots of long straights but does have a couple of tight corners, or the set up they has yesterday did. Looking at the available real estate it is unlikely that many of the races could have long straights so I guess I am looking for shorter gearing, or is my stock 8v fine?
All advice / comments gratefully received as I have until Christmas to come up with a plan and get hold of the necessary bits before moving the car to Germany in Jan and starting preparations for the first race in about March.