The saga continues!!
So, this weekend we swapped out the loom (the 'vw mechanics' had messed around with the old one quite a lot). This time we used the mk3 coil and did away with the TCI set-up as all the wiring is 25 years old and thought we may have more luck using the newer set-up.
It's up and running, but it intermittently dips idle a little and hunts, then misfires at higher revs

Also seems to run quite rich as smells of fuel. No codes being shown on VCDS unfortunately.
Going to stick some fresh fuel in it and see if that helps, then take it for a run and give it some beans to clear the cobwebs. Not holding out too much hope of that fixing it though.
Rev counter is playing silly buggers though, which may point towards a problem: when you turn the ignition on, the rev counter sweeps up to about 5k then back down to zero. Behaves itself when you start the engine. Anyone have any ideas what would be causing this? We have added a spade terminal to the Mk3 coil, then connected this to G1/12.