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Block Rebuilding/Prep Questions



First quick preface to my questions.  I've been absent from the list for a little while, and a couple of months ago, I was rear ended by some girl in a camry at about 40mph, and my scirocco was totalled.  I kept the car from the insurance company, and it will eventually end up as a parts donor for my next scirocco (hopefully a MK1!)

Anyway, I picked up a free 9A block today from a guy who lives around the corner.  I want to rebuild the block, to be used in my next scirocco, but I'm new at block rebuilding.  I can't really spend a fortune, so here's my questions...

-What is the bare minumum that should be done when rebuilding a block?
-Is there anything I SHOULD have done at a machine shop? (hot tanking, etc.)
-What sort of performance options are available during the rebuild process, that don't cost a fortune and/or are worth spending the money on?

Right now I'm just worried about the block and will tackle the head issues later.  Thanks for all the help and input!         

Doug C.
'88 16v
'89 Jetta GLI
Raleigh, NC