There's a lot of data out there on what works well on autocross and road courses in MKIVs. I'll share some of my own experiences. I ran my Wagon on road courses for years, and also had a '99.5 2-Door Golf that I used for some time.
Here's a photo of IBW at Lime Rock near the end of its race career.
There are several things you need to control to make a front drive, nose-heavy car handle decently well on the track. Most important is front-end geometry. It's essential to set the car up so it has negative camber (negative two to three degrees) and that camber doesn't change dramatically when the car rolls. This means you have to control body roll. Sway bars are a bad way to do it because they'll unload the inside front wheel and allow it to spin, unless you have a LSD. Stiffer springs are better. And a good rule of thumb is to keep the car tall enough so the control arms are parallel to the ground. If they are higher at the wheel than the subframe you're encouraging positive camber, which will reduce grip.
Second is that the car should be level. When it's level it will appear that the rear is lower than the front because the front wheel openings are higher, but it's not. Keeping the rear level with the front helps the car rotate.
Here's my '99.5 Golf at optimum ride height and corner balanced.
Whether or not you use a rear bar is up to you. Front bar is useless, keep the stock one or disconnect it. Or take it out. But run stiff enough springs to keep front body roll in control. If you do run a rear bar use one that's internal to the rear axle. The ones outside the axle aren't stiff enough to make much difference.
Regarding hardware, Here's my suggestions:
- Good quality coilovers (I like Konis, but Bilsteins are good, too)
- Run springs stiff enough to control body roll (try the ones that come with the coils first, but I had better luck with 550 Front/400 Rear. I ran 700 front/550 rear for a while and that worked well, too. Surprisingly it wasn't brutal on the street.
- Camber plates to get the negative camber you need (Ground-Control has ones with spherical bearings, those work well, but you won't want to run them in the winter).
- Rear bar like the one we sell or similar
- TT control arm and subframe bushings.
- Strut brace
That's a good start. There's more you can do, but you'll have a lot of fun with that kind of setup.