Definitely a good move! I would recommend to avoid any Golf outside warranty like the plague! My mother has owned 3 Golf's over the last 15 years and the first one was great but the 2002 and 2006 models she got were nothing but trouble after the warranty ended. Massive bills and completely unreliable. Hence why I laugh every time someone talks about German reliability and build quality and tried to make fun of me owning Alfa's. Safe to say my family are never touching a VW again!
You'll find the TS is a lovely engine. I've never driven one in 1.6 form but had a 2.0 GTV and just yesterday picked up a lovely 2.0 TS 156 Sportwagon with tan leather which I am loving! They're great engines and excellent if you want to learn how to use the spanners since there is such fantastic information on this forum and they are really simple engines to work on. Especially oil changes. Don't even need to jack the car up so long as you have a shallow oil pan to catch the old oil in.
Regarding what I am doing to my 156 SW; giving her an oil, filter and coolant change next week and then I will be getting her up on a hoist for an inspection so that I can start planning my summer upgrades. Hoping to get a Novitec Cup suspension kit and replace all bushings and wishbones if necessary along with a stainless Novitec exhaust.....though the girlfriend might kill me first
Also need to sort out a decent headunit as the PO put some complete POS unit in and I'm pretty sure they didn't wire it properly so I will probably need to rip it out sometime this week and take a look and see if I can fix the mistakes the previous monkey made when putting the unit in. But ultimately I hope to replace it in a couple weeks with a unit with bluetooth and AUX input support.