Thanks for the reply! The forum is looking super dead at the moment 
The Mk2 would be staying with me. Well, put this way, the mk6 won't be joining me if the Mk2 has to go. It's the old gal, or both.
For them still to be revising it into 2011 it must have been pretty bad, is there any goodwill come back or anything is you get issues on an out of warrenty car? I'll read that thread now
Glad to hear you're keeping the mk2

VW will not acknowledge that there is a timing chain problem, despite issuing 3 revisions of the part

If it does go bang, VW usually cover the cost of the replacement engine (all the while still refusing to acknowledge the problem!) However, if you read the entire thread you will see that people have had varying degrees of success regards contribution to labour costs, and that is often down to goodwill on the part of the dealership. So, as said, look to buy a car with a warranty. It would be madness to buy an earlier mk6 without one. If budget permits look at 2011 plate onwards.
And yes, watch out for whiteworm on diamond cut alloys. A diamond cut refurb involves a specific process using a special lathe, a decent refurb costs around £80 per wheel for 18".