I'e had no problems with my water-cooled VW's
95 Jetta owned 26,000 through 90,000 miles - wrecked, but had no problems except or the timing belt snap, non-interference head, no bent valves
04 Jetta TDI 60,000 miles , no problems
05 Jetta GLI 30,000 miles no problems
My co-worker picked up the new 06 Jetta last year, loves the car, no problems and the new 2.5 motor is more reliable.
Next car for me wil probably be a GTI after I run the GLI into the ground.