Hi dan_apps,
The car cost me £800. There's nothing else mechanically wrong with the car at all. The paintwork is more Tornado Pink than Tornado Red, but the interior is in great nick, and everything (central locking, electric windows, heater, demister etc) works.
A very steep driveway managed to rip off half my front valence and the plastic arch trim from the passenger side front wheel arch, but that's all fairly easily fixable.
£150 seems reasonable for an engine swap - I was expecting much more. I'm not sure a £50 eBay engine is going to be a great idea though!
Any recommendations of a good garage in Berkshire, near Reading? Other than 'Henley VW'/VAG Autoworks who were completely useless the last time I took it there.