Faults:
Rear caliper handbrake mechanism disintegrated.
Driver-side seat bolster is worn through to the spring.
Rear damper leaked.
Temperature sender failed.
Wheel bearing worn.
Difficult to select 1st gear.
Electric window mechanism and relay failed.
Sunroof wind deflector guide arms corroded and failed.
General Comments:
Some of the problems noted above are common in the golf, specifically:
The rear brakes do very little and hence are prone to seizing.
The temperature sender is a very common failure point - if you have erratic idling check this first.
The electric windows are poor, not much can be done except replacing the mechanisms when they fail.
The gearbox bushes are prone to wear, and hence gear selection can suffer - replacement is not difficult, but re-adjustment is 'fiddly' and can take some time to get right.
It is perhaps a sign of a high-mileage car that the driver-side seat wears, however the vast majority of GTIs have seats with ripped bolsters, perhaps due to the quite high (and supportive) bolsters.
I'm conscious that there are many problems noted for my car, however I received it free from my brother who didn't maintain it very well. The build is excellent, however this tends to result in well-used examples which are subject to the usual wear and tear (see damper and wheel bearing). The bodywork is immaculate, and the engine block is made from over-specified iron allowing for some extremley high mileages.
Handling is first-class, immense fun. The brakes are good, steering direct, and the engine very flexible.
The 8v has more torque than the 16v, hence it's a little more practical around town and has better initial pull. However, the 16v has significantly more power, and will rapidly catch and pass an 8v. The 16v has slightly uprated brakes and suspension, and sits slightly lower, giving a more sporty ride. I'd suggest the 8v is more practical, but the 16v is better for the racers among you.
The car is becoming a little uncomfortable, as perishing suspension bushes result in jarring over rough surfaces. Road noise is a problem on motorways, and the design of the car means that road dirt gets sucked onto the rear hatchback, which tends to seize the rear boot lock.