Nice to meet you James.
This subject had been covered many times, use the search function.
What is your budget?
Many will swear by the Koni/Eibach combination. Me, I have the Boge Turbo kit from GSF and have no complaints. Particularly since it was only £125.

Well, to me it was anyway.
Coilovers tend to be rubish at the budget end, and you would need to spend some serious cash for a good set. And even then, they will be/may be a harsh ride.
So best stick to gas filled shocks and some lowering springs. All will fit as the MK2 set-up is the same for all types.
Also look to get new/uprated G60 top mounts while you are at it. And if you have the time, a new set of bushes all round.
Jonathan.