yeah my moneys on the rocker cover & or the breather hose,
just picked up a 99 plate mk4 1.8 20v for £500, the guy said it was burning oil bad an it had this problem, i arrived, started it, lifted the bonnet spotted the problem & handed over the cash took it home, spent £25 on a second hand rad & new breather pipe from euro's then the nipped up the rocker gasket ..... runs sweet as a nut now oil smell gone...... pmsl.... mum loves her new mk4..... gota love a bargain...