Through out this forum there are alot of people suggesting repair procedures for their 1.8T engine when they are experiencing a wide array of problems.
My wife's 2000 Jetta (1.8T, 90K+) started experiencing a power loss problem 1-2 months ago. Prior to the power loss symptoms, we had knowledge of the O2 sensor failure via the check engine light. Anyway, at start up, then engine would run fine, but when you gave a little gas, there would be a lag (drop) in the RPM's, almost as if it wanted to stall if I gave it more gas....so, I would give it about a minute to fully "warm up" and put her in gear. Highway driving, the car would perform as if there was never a problem to begin with. Then that fateful day came to where the car would not start. I'd turn the key, the engine would "start" (for about a second or two) and then stall. we towed the car home and started our inspection process.
Removing the spark plugs, we found them to be "fouled" (dark and oily), a sign of fuel/air mixture problems. Replaced the spark plugs and replaced the O2 sensors (2). Start the engine, ran "better", but giving her a little gas she'd want to stall or would eventually stall. Decided to start the car, and then unplug the MAF (Mass Air Flow sensor)....the second I unplugged the MAF, she ran like a charm. So, before any of you go out and spend a "C" note on a new MAF, I'd suggest trying my little trick just to see if that's your problem.
By the way, most independent import auto parts stores will charge you around $325 for a new MAF, but as it seems the VW dealerships have dropped their prices on most models of MAF's (most likely to their mass failure)...the MAF for my wife's 1.8T was $80.
good luck and happy wrenching.