UPDATE, and CLOSURE:
At the time of my last post I was at a point of throwing in the towel, or throwing more good money after bad.
I threw money in. I expected the worst of my water logged engine, which was at my son's dorm in Atlanta. I was in Charlotte. Because of logistical issues I could not tow the car, the mechanics in Atlanta couldn't take on my problem because they had too many projects in their front yard, etc.
In a panic, figuring out my motor might be toast, I bought Chrismak's NY car. It has 28X,XXX miles in it, a manual swap, and some aftermarket cam, BSM, and a tune.
One thing led to another, I had my wagon and Chrismak's car towed to VWZTIPS's place. Jeff turned my car's motor and initially got no compression. He changed out the oil which was milky. Turned it again, and got it started. Rough, but the engine ran. At this point it was a choice of taking my motor apart and rebuilding it, or swapping out Chrismak's drivetrain and cut my losses (Chrismak's car was $2500).
Long story short, I decided on the swap. AFTER the swap, the water boarded motor got put into Chrismak's body, and the oil was changed out a few more times. After a few pulleys replaced and the A/C compressor changed, N75 replaced, my water boarded motor is running like NOTHING happened to it.
What is the lesson learned? Don't panic. But don't wait too long to bite on a GREAT deal such as Chrismak's offer. Now I have a GREAT running wagon TDI with a 5 speed that gets 44.5 MPG at 70, 45.5 MPG at 55, and can still catch up with an M5, and a very well running sedan with a 5 speed auto.
My brother in law is buying the auto. So it is going to a good home.
Paraphrasing oilhammer's comment: if it runs, then it has dodged another bullet and will live another day. Or something like that.
In all, I am supremely pleased with VWZTIPS's expertise, thoughtfulness, timeliness, and reasonable rates. I am very fortunate to have met Jeff. He needs to be put on the map of "Trusted Mechanics by State".
Happy motoring. Oh, NO one used that screwdriver test.