The handling should be pretty good; the 2.0 litre will handle better than the 2.8, as the engine is lighter so the weight is more balanced. The 2.0 is a SOHC so it has more low-end power; the 2.8 is damn fast no matter what range you are in. If you're looking for something very fast, go with the 2.8; something reliable, cheaper to maintain/insure, and economical, get a 2.0 (what i have).
They don't have turbos stock (the 1.8T didn't come out until 2000 i think), but you could always add one.
Hit me up if you have any other questions, or check out
www.vwvortex.com 