Yep I agree, MK2's are the dogs danglies. BUT.........
If your gunna get one you've got to bare in mind that the MK2's are getting on a bit now and you could find one that looks mint , but it could be a right old shed underneath, you've got to think how much the cars gunna cost you once youve bought it,
I've done it my self, gone out and bought a beaut and two months down the line everything went tits up,
New gearbox, New fuse box, New break pipes, new head gasket, new exhaust, New ECU, Ect.........
I'ts all down to the age and millage.
Make sure you take a good mechanic with you when you go to look at one, unless your a mechanic in which case your laughing,
Or you could go for a MK3, And lets face it they are much better looking than the MK2, Find a 2.0ltr 8v GTI
and the insurance is'nt actually that bad, As long as you have a descent Alarm & Imobiliser.
Tinman is right, They handle like sh!t but any golf lover that you bye one of has probably upgraded the suspesion, I've got KONI on mine and it sticks like sh!t to a blanket and when taking a round about it dosen't even lean

and think of all the extra's you get with a MK3,
You could pick a nice M or N Reg one up for ?3000-?3500 and not have to spend a penny on it for 2-3 years apart from servicing .