Sounds good but I worry you'll get bored of the lack of speed.
My mate is building a MK1 Golf and had a MK2 16v with throttle bodies, 4 to 1 manifold etc etc.
He was looking at approx 170 - 190 BHP and approx 800 Kgs
For our local track this just isn't enough.
He's now bought a 1.8T 20V.
I've been on the track against a 205 GTI with an MI16 engine and I litterally walked past it in my 210 BHP LCR on the straights
You would/will soon get tired of being over taken on the straights.
Don't get me wrong, it will be amazing on the corners if set up well.