Not to add to the misery, but I fixed mine with the help of a TDI member...
I have owned my 2001 TDI for about 2 years now. Bought it and my wife's 2000 as a "matched set", both with about 25,000 miles on them. While doing an oil change about 6 months in, I noticed a hissing sound from mine that my wife's didn't make. Tracked it down to the #1 glow plug leaking. Torqued it down and voila, "a spinning glow plug". Not sheared off, just spinning. I pulled the plug out and found that someone at sometime had taken a drill to the head. I assume to remove a previous glow plug. Whoever it was bastardized the head severely.
So...
1. I cleaned the hole, stuffed oiled cotton in the bottom of the hole and recleaned the hole.
2. Carefully "rerounded" the hole with JB Weld in preparation for the next step. Let dry overnite.
3. Got a heli-coil kit from a TDI club member. The kit included a 2 step tap. 10mm then 12mm. The 10mm follows the hole staight in then the 12mm follows. THE JB_WELD WAS TO ROUND THE HOLE FOR THE TAP TO FOLLOW.
4. Once the 10mm part "bottomed out", I removed it and followed it up with a straight 12mm tap to the proper depth.
5. Now the tricky part. Vacuum, vacuum, vacuum the metal. Then compressed air, compressed air, compressed air. In other words clean it real good WITHOUT REMOVING COTTON!
6. Remove cotton with tweezers.
7. Install heli-coil and install glow plug.
8. 120,000 miles w/no problems.