Danny's suggestion is to pull out the 8V motor and fit an ABF (2.0 16v from a Golf3).
ABF runs on Digifant3 rather than Digi2 management, which is much smarter - there's no AFM on it and two knock sensors, among other features.
Fannying about taking the 8V head off and replacing it with a 16V head isn't worth it when you can pick up a complete ABF-powered car for less than £500. These also come with a stronger cable-change gearbox, too. This will pretty much bolt right up, although you need a Cordoba 16V o/s driveshaft as Golf3/Toledo 16V are wide track. The cable-change gearbox diff is wider than the rod-change one, thus your current o/s driveshaft won't fit.
Alternatively, pull your current counterflow head off and fit a crossflow head from a later VW. You'll get at least 15% better flow and because the inlet ports are on the front it's much easier to fit throttlebodies, if you really want to play.