The answer to all three questions was "yes". There was enough clearance to allow the exhaust to clear with the 16 mm block. The bigger 1.9-liter engine runs with the 1.6-liter injection pump. The pump was adjusted to allow for the extra displacement. This is a simple matter of adjusting the fuel delivery. You can do this yourself. Eurospec experts will be able to help you. Eurospec includes injectors with each engine. Finally some small changes are needed to use the 1.9 engine. Eurospec includes a new timing belt and a smaller diameter idler pulley with each motor. All the accessories bolt on, but the cam timing belt cover requires some clearing. This is a job easily accomplished with a pair of tinners snips or a anibbler. Under the hood, with the 1.9 L motor you may need to trim the hood insulation.
Eurospec distributors can provide detailed instructions regarding the modifications needed to use the "D" head with your 1.6 manifold. Basically it's a matter of welding and "match-porting" the manifold to the intake manifold gasket. It's a job better left to someone with experience. Eurospec will be offering this optional service.
Eurospec is selling the 1.9 liter with the 1.9 head for $1895, and $1995 for the 1.9 with the 1.6 head.
I was pleasantly surprised driving the Eurospec Diesel Golf -- gobs of torque and smooth power delivery. If you've got a diesel that's tired, or could use a few extra foot pounds of torque, the complete 1.9 package is a good way to renew your oil burner's life. Fuel economy remains almost identical, as as you don't have to put your foot in it so much to keep up with the higher pace of todays roads.
Eurospec Racing Ltd. (408) 848-4203