1. Dont bother with expensive leads, just get some decent oem quality ones along with new tripple electrode sparkies from
http://www.vwspares.co.uk. A spark, is a spark, expensive leads wont give you any more performance.
2. 4-2-1 is a worthwhile investment, but only if you plan to stick with your 8v lump for a long time, or plan to upgrade to a 2.0 8v GTI lump later. It wont fit on a 16v engine, so if you decide to go that route you'll have to buy another...
3a. Throttle body from a 2.0 8v wont fit as the 1.8 90bhp lump uses a SPI (electronic carb basically) and there's no way it will go on.
3b. 2.0 8v inlet manifold wont work either as the inlet ports are a completly different shape, and you would have to convert to fuel injection even if it did.
I'd look into fitting a MK2 1.8 GTI head, it has bigger valves & the GTI cam which will bost power straight away, or just fit the GTI cam if you don't fancy swapping the head. (Though if you do you'll be able to fit your 4-2-1 manifold at the same time!)
Only issue with the GTI head is it doesn't have the inlet manifold coolant channel hole in the back, which I believe your old head will have? I know MK2 carb enginers do, but not 100% sure on MK3 spi, hopefully someone can confirm. Oh and it has injector holes, you could just leave the injectors in though

Your problem sounds to me like either your coolant temp sender or the lambda have packed in, or both! I'd start with a new blue sensor then look at the lambda
