I am happy you got the Golf Back
IMO The MK3 Golf makes the perfect candidate for the 3 cylinder TDI Swap. Electric would be cool but much more expensive due to the weight of the Golf. The electric would also limit you for range which may or may not be a big deal to you. On the 3 cylinder TDI You only have to modify the single engine mount which any experienced shop can do on the cheap.
You Also will need the CTN transmission I just sold my last one but you can find them on Ebay or around Portland here is an example from Ebay =
98 VW Jetta Manual Transmission 1 9L Code Chu and Ctn | eBay
You will need two transmission mounts which there are two of them for this transmission. I believe I have both of those in the shop actually. So in total you would have 3 mounts. One for the transmission and Engine and the 3rd which bolts the transmission to the engine which is located at the starter motor.
Next you need the TDI motor! Now you can use a 4 cylinder unit to achieve 75mpg but the 3 cylinder will give you the chance to beat the infamous 100mpg number
I can get these engines here at a reasonable price all around 100K miles on them. These can be built up to easily withstand 180 horsepower and over 220 ft-lbs of torque. I have a honed out and very clean 3 cyl engine block waiting to be built up for $175 and a cylinder head unit with internals for $125. Also many more parts such as pistons, oil pump, balancing unit, ECU etc etc.. I would make you a sweet deal on everything if you are serious about building this Golf into a famous MPG monster. If I did not acquire the Centurion car one year ago I would have probably built the 3 cyl TDI golf myself but the Centurion for me takes priority at this point which is why I have started selling all the VW stuff I have.
If you want to talk about it PM me and I will give you my number so we can talk its much easier than trying to explain it all in the Forum. Bottom line I can help guide you on this and you are like 30min from me.
Oh almost forgot the electric power steering can be had for under $200 I think I am into it like $175. I would give it to you for what I have into it to get you going on the cheap. Here is a youtube video link to a guy who used a similar setup to what I have. This will give you an idea as to what is involved =