Hey and welcome Neal,
Sounds like a pretty awesome project. If you're serious about this as a long term project, the first thing I would do is get in touch with all the people that have done this before and make a detailed costing spreadsheet and project plan. Costs will be different in different countries so get the man hours estimate too for things like engine building and wiring loom install. Line that up with your expected disposable income and see what looks possible. When you've run the costing go ahead and add 50%.
There's a lot that can be done with that engine including stroking out to 3.6L and turbo/supercharging. None of it is in any way cheap. In fact I'd guess that you'd probably end up spending about AUD 40,000+. Ask yourself if you're the sort of guy that would do this instead of going out boozing and taking holidays with your mates. For years. That's the sort of sacrifice you could be making unless you happen to have the money already. Projects like this will never pay you back if you have to or want to sell in the future.
Before you go any further you may want to go out and test drive a few cars. Specifically the Mk5 R32 and then a say a tuned Mk6/7 Golf R if you haven't already. Try and make a rational decision as to whether you're ready to lock yourself in to that as a project knowing what you'll come out with on the other side.
I own a Mk6 Golf myself it but I do love the Mk V R32 more than the Mk6 R. For the money and time you're looking at just to get that engine into a Mk6 Chassis, you could most likely have a stroked / turbo MkV R32, used Audi S3 8V or in a few years a used Audi RS3 instead.
Good luck either way and if you do commit to the project, please start a build thread on the forum.
Cheers,
Mark
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