So as an update from the last post...its been raining a lot here lately, torrential downpours have been frequent. And so far, no leaks! So seems as though the airbox may just have been the culprit. Though I'm sure if we put the carpets back in, it will leak.
Made A LOT of progress this weekend. The engine rebuild begins!!! We pulled the car into our local shop on Friday night to cool down. Came in on Saturday to start the engine removal. We got the engine and transmission removed together as one unit, which made life easier. The transmission came off, and was covered in wonderful black diesel grime. Took it outside and powerwashed it, then I scrubbed it with Purple Power at full strength. Lo and behold, there was a silver transmission under there! Got a lot of the brackets taken off of the engine and we spent time on Sunday with brushes and Purple Poweronce again cleaning them up to get them degreased and ready for sandblasting and painting, which will hopefully happen soon. This week we'll be sending the Injection Pump off to Giles in Canada to get it rebuilt. We'll also be hopefully getting to the shop on Wednesday to begin removing the last few big things: oil pan, turbo, and head. We'll be sending the motor off to a machine shop to get a once over and see what we're up against before making other decisions. We'll be asking a friend of ours who owns the shop where we're working on this about the turbo. When we got the car, it felt like the turbo had some shaft play but we also hadn't run the car much at that point. Now that its been getting used, no shaft play. It boosts and holds 9psi no problem so we might be alright.
We hope to get all of the accessories out too and get the engine bay cleaned up nice. Its got a nice grime layer in there. Hoping that just cleaning it up will be all it needs but we'll get a coat of paint in there if we need to.
I'm at work right now, so I don't have the pictures. But you can check them out, plus some more details on the rebuild thus far here:
1984 Turbo Diesel Jetta Project - NCDubs | VW Audi Porsche Performance News & Tuning Forums
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The Baby:
Darla, 102k, '99 New Beetle GL 5-speed. Bone stock. Acquired 4/6/05. Gave her life for me 8/17/11. RIP
The Project:
Klaus, 180k+, '84 Jetta GL Turbo Diesel. Rebuilt and bringing 50+ mpg. Slightly improved from stock

Acquired 7/12/08
The Baby Brother:
Günther, 20th Anniversary Edition GTI
The money saver:
2001 Jetta TDI GL. 114k. Dead auto, swapped to 3 pedals. Hubby's DD and our trip car