Google Search:: "It might help if we knew what engine code it was (I am jumping to
conclusions that the thing is an 8 valve motor).

Hmmm, looks like the 88 Scirocco might have had a JH 8v or a PL 16v.

Well, the other folks mentioned having a good running O2 sensor, I'd
like to add you do a compression test on the motor, and via one of those
shop base emission tester type thingies get the air to fuel ratio dialed in.

hth,
TBerk"