for a sensible reply to the question you asked yeah mk4's arent the best handling (better than mk3 boats though), mine was well lardy, lowered her 40mm and that sorted it (along with 17" alloys with 225 tyres) and this got even better when i had new rear axle bushes and front anitroll bar bushes fitted earlier this year. thats the cheap option, then theres full shock/spring kits and coil overs etc its all down to budget. if your riding with 15" vw alloys though with 65 series tyers these add to the lard affect as theres alot more movement in the sidewalls. id change change both of them and them see what you think......
As for engine wise, pearler mate!! fast and economical as standard and with a remap and a few other tweaks you can be seeing 160-170bhp easy.... unless you get a 150 pd tdi and then things can get even more lively!!!
so what you waiting for!!!! go get it!!
Gaz