Something to keep in mind regarding the [non-W8] B5 Passats: the electric cooling fan should come on ANY time the A/C is switched on with the engine running. These sometimes die, and it will cause poor heat transfer, as the only fan left is the engine driven clutch fan. And that fan is a dual speed, but is controlled via old fashioned relays and resistors, in salty areas the resistor mounted down low on the underside of the left (driver) side unibody rail can get corroded and break its contacts off. Easy to check, as the connector for the fan is the one with the two big wires in the connector holder near the PS fluid reservoir. Brown as always is ground, the red is the power.
Also, these B5s do NOT use the more efficient expansion valve system that the transverse cars of the same era use. They instead use the fixed orifice type, and this little restriction tube is in the coupling up near the cabin filter. It should be checked and cleaned or if necessary replaced if poor cooling is experienced.
And if you decide it DOES need a compressor, Denso is the OEM supplier for these. And they use the same one as the AWM 1.8t engine, if you decide to look for a used one.