I would get a second garage to review the car and confirm its the same issue.
If it is then I would look in the following locations;
Ebay... (you should of bought that engine I told you about the other week...) which was a VEGE engine - there website is
http://www.vege.nl/index2.php?portalID=17 - this is the best engines you can get, I'm looking at there engines myself at the moment...
http://oemparts.co.uk/ - will do a 1.6I engine - best to call them up and find out price
http://www.tsr-performance.com/ - they specialize in all sorts of engine set-ups again best to call them as ask for details (south west of UK)
http://www.bigboystoys-uk.com - they provide engines - I've heard they do good price, but have not heard any feedback on the quality of engines.
http://www.candrenterprises.co.uk - these are the best guys in the business for knowledge and they are in nottingham area - again give them a call for details.
It all comes down to what is really the issue and where you feel happy to get the parts and then somone who can install those parts for you into your car....
did you take the car to Joe to have a look at your issues?
Si