Ok, you have the right idea. Personally though if its out of the car i would drill the block and fit the proper CPS, the EFI flywheel will be 220mm aswell, where as s1's have a 200mm flywheel. So thats an added bonus.
Plus the fact the 1.8 bottom pulleys are rather large and have minimal clearance, and you also need the alternator bracket and alternator or pulley, aswell as the cam cover.
You can run either management, OFAB is said to better, using the marelli type MAP sensor which can be upgraded to 3 bar.
If you run OFAC, there is one wire to be cut, if you run OFAB you also need to change 2 wires on the ECU plug, and change the plug for the MAP sensor. Simple as