The T16t engine is so shite my mate did a 11.9 with his at Pod. All that was changed was ECU, Pistons, Turbo and Manifold. Andy N didnt do to bad with one either iirc.
£5k for VAG conversion or £1k max with labour for T16t swap. The Vags a better engine but theres a massive price difference. I am thinking about a 200bubble with a T16t for a cheap track car, but then i know them and can do all the work myself so wont cost me £500 for the conversion.