In conclusion of this tread, I am saying goodbye to my baby.
I ended up draining the tank using the following trick (opening bottom left dash, removing the fuel relay and jumping it)
I then put some clean diesel in it and started up. It is able to run and idle normal but every random 2 to 20 seconds it clacks... eventually stalls out.
Sometimes starts as if there are no issues, sometimes doesn't want to start for a while.
As for the "friend" of a friend, I am pretty sure the guy is full of sh*t. My dashcam is missing 7 minutes of video from exactly as he turns into the gas station, up too when he gets out of the gas station... while many dashcams can bug out, that bug is way too convenient.
I also put some of the extracted diesel on some styropfoam and while I didn't have a styrofoam cup... it looks like some of it melted a tiny bit over time so I assume the diesel was indeed contaminated with some fuel.
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(I really need to get a styrofoam cup to make the test properly)
Scrap yards were too greedy and said 400$ CAD assuming the cat is there, that the engine and transmission are working which I feel is a ridiculous offer.
I put it up on Marketplace for 650 with full maintenance history and updated pictures.
I sold it for 600$ to someone about 300KM away in a Quebec City Suburb. I got it towed to him for 120$ using my CAA after upgrading my plan.
The buyer is a VW enthusiast, he is certain that the issue is only related to a bad fuel injector, however he told me he didn't take any chance and simply purchased a BRM engine to swap in... in case swapping the injectors don't work.
Last pic of my wonderful Jetta.
Home for all your photos and videos, automatically organized and easy to share.
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Always a sad feeling to seeing your baby go.
As for me, I am looking for another TDI because I simply don't like modern cars. I love TDI's and this time I need something with more utility. Something I can fill with wood, or put in a snowblower in, or a lawnmower to bring over to get maintenance so I don't need to depend on friends who have such utility vehicles.
I am looking for a 2001-2005 Passat TDI Wagon. They are pretty rare. Found one with a body in super rough shape in Montreal, the seller is terrible and barely responds. I found another one much nicer in Ontario... I am thinking of going for a road trip to pick it up, bring it over to my mechanic, give it a timing belt change as the guy drove it 150 000km without chancing it... get it prepped for Mechanical inspection (mandatory to get it plated QC) and... make it my next long term VW Spare.
I thank everyone for your time. Cheers.
And I am happy to know that my MK5 TDI will live again and that all the maintenance I put on it will come to good use for the next owners.