Gtijoe,
That was what I thought as well - all MK-2's should have round headlights. The owner has no idea what I'm talking about - he got it this way from the ex-owner of the car.
The reason I think differently now, is that I went to cardomain.com and searched for a few GTI's from before 1992, and most of them had squared headlights, which caught my by surprise!

Thanks for the help - I was wondering if you have an estimate of how much a debadged double grill should cost? Do you think I could get one with the famous GTI red border, or is that harder to come by? I'll buy the parts here in Israel, but your estimates will at least give me some type of a clue (Are we talking 30 pounds, 50 pounds, 100 pounds?).
Thanks again!