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your problem could be that maybe your thermostat is stuck closed which would cause the motor to overheat, based on the how you said that u had no problems until one day it started overheating thats what it sounds like you should check first. I own a 94 jetta 1.8L and the thermostat housing is located on the water pump itself on the bottom right hand side of the motor. If you have power steering you must remove the bracket and p/s pump from the block to access the housing
i would change this first or even test it, by placing it in hot water ( use a thermometer and find the temperature range on your tstat and see if it opens, if not thats your problem,
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