No dust or squeal, look into ATE Ceramic pads. Stop just as good as OEM, and ATE are an OEM supplier to VW. Also look into other OEM-supplier brands like Textar and Zimmermann too.
I wouldn't advise machining the discs. One set of pads is enough to wear them down close to minimum thickness in most cases. The discs are designed to wear down with the pads anyway.
I'll probably get hammered from the usual crowd on this, but I've found the Remsa/DBA combination just doesn't stop as good as the OEM-spec offerings, and are a lot dustier.
'07 Transporter 1.9 TDI
'01 Beetle 2.0
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