Thanks for all the replies.
I did buy the car in the end. It seemed a bargain at ?270, (D Reg 8v gti, with tax and mot till June) Even if it had faded to a very light pink / white colour in most places.
However, I bought an orbital polisher, and some t-cut.
I was very dissapointed that the t-cut didn't do hardly anything at all. I thought that would be it, and that I'd be stuck with a pink car.
Then my dad suggested that I try a cutting compound, similar to what they use in a spray shop, to remove overspray etc. I bought some from my local Motor World, and gave it a try.
Its taken me and the missus all afternoon, (Started at 1, and finished at half 5) but the results are fantastic. We used the orbital polisher for the bonnet and roof, but did the rest by hand. You would never believe that it has ever been faded at all. I wish I took some before and after pics.
I would recomend using a cutting compound to anybody! You then have to polish the car with normal polish / wax after, so it is a big job. The car looks so much better though!
I'm sure you'll hear from me in the future, I've got loads of questions etc.
Regards,
Chris.