More updates with no pictures as my phone is broken, and I don't have a digital camera anymore! But I will update this post with pics when I can, just thought I would write down what I've done before I forget!
The wheels and shocks are all on and looking good. Rolled the front arches, bit of camber and they tuck nicely, not bad considering they are 8j et10 after spacing! Both rear wheel arches were knackered, the one I thought was good was just filled with filler, the bodyshop must have repaired it when they resprayed my rear quarter. So as rolling didn't work, I just got the angle grinder out and cut off the lips of both arches. Sealed the back side with underbody sealant and stuck the arch covers back on with double sided tape and body kit adhesive.
Also got around to repairing the inner door sill. After picking out all the filler someone had just shoved on top of the rust, I was left with a small hole. Wire brushed everything loose, treated the rust, sprayed some rust inhibiting primer, then regular primer. Bridged the hole with P40 and some ali mesh. Got my dad to apply the final layers of P38 as unbeknownst to me until recently he spent 5 years working in a body shop after he left school. The little ledge of the inner sill now looks completely original. Just needs paint now but the car is currently at a VAG specialist for reasons I will now explain.
The car has been a nightmare mechanically recently! Well more accurately, electronically! First, the ignition switch suddenly died a death (common problem so I hear). £15 in Eurocarparts and Xmas Eve morning spent fixing this, had to remove the whole steering column to get to the switch

Then decided to finally do something to fix the car cutting out on me. Noticed the crank sensor wires were exposed and shorting on eachother. Bought a new crank sensor (again from ECP, my mistake!), and fitted it which was a pain in the ass to do due to the poor access.
Anyway driving back from Poole to Bath the next day, car cut out on me maybe 5 times, would leave it 10 mins then it would restart and carry on for a while. Didn't suspect crank sensor as this was new so replaced both ECU and fuel pump relay as I heard these were common faults. All was well for another few days, until last Friday when it cut out again! This time however it wouldn't restart. AA was called and he diagnosed a faulty crank sensor, he tested it with a little LED flasher and it was not producing a signal. Got towed to my local VW specialist where it currently sits awaiting their attention. I have a feeling something else may be playing up too, but at least its in the hands of professionals to properly diagnose it now!
Sorry for the essay!