Defiantly go for coilovers straight up, I have the cheapest around. I paid 400 for my hottunings
Yeah they are pretty stiff and the ride isnt great. But for what I want they do the job. And like everyone says "you get what you pay for!" If I had more cash I would go for a good set of KW's. Or really I want bags, but meh. Although yeah it depends how low you want to go. If you want to go pretty low, you'll have to either cut your swaybar or go aftermarket. And if you go Suuuper low, you'll need to get a frame notch(which I am in desperate need of)

Also if you are able to pull things apart and put stuff back together you should save a heap of cash and do the install yourself.
Have a read through this, it's pretty informative.
Noah's MkIV VW H&R Coilover Installation HOWTO