Heater Channels
Heater channels were solid apart from the underneath panel which had got some fairly heavy surface rust on (no holes though). Rather than doing it in a few years time, I replaced the bottom plate on both sides. The rest of the heater channels were rock solid as the photo shows, thankfully. 

This meant splitting the body from the pan. As the garage of the time was a very tight single one (about a foot either side of the car), the splitting took place on the front drive, much to the amusement of the neighbours and the couple who stopped their car to watch. It's not as hard as you'd imagine - just make sure that everything is disconnected - speedo cable, wiring, steering etc. It's also quite handy to have the engine out as it reduces the height to lift over.
Rotten heater channels? - see the How To replace heater channels guide

Rear Quarter
This was bought from vw heritage for £100 & picked up at the volksworld show - interesting trying to get it into the back of a mk1 golf!. Having replaced one of these on the '62 which required a lot of modification (window size, door locks and inner rear wings on '62 are different & only the later panel is available), I found this one very straightforward to do. The panel was cut in through the window opening to the 'ear' vent behind it and then down to the back, avoiding the complicated roof joining area. The panel was tacked in place then the door, window, wing & running board were fitted to check alignment / panel gaps etc. The rear body/chassis mount area was also checked by fitting the bolt & grommets in place. It was then seam welded, welds ground down and only a tiny bit of filler was needed to finish it off. See How To article

After this I got hold of a cheap buggy which took over as a project, then moved house, so not a lot happened over the summer apart from installing a new front beam & balljoints. 

Front Clip
January/February - Progress is not as quick as I'd like due to sorting out new house /DIY / spending the best part of 6 months welding other peoples cars etc. Big bonus is that the new house has a bigger garage making working on cars a lot easier. As the joins between the wheel well panels were bubbling & one of the bumper mounts was shot it was decided to replace the lot with a front clip thus getting perfect machined welds in this area. Before the fitting up started, the new front clip needed to be modified for the access plates (the 2 semi-circular screwed on plates behind the spare wheel - see pic 1 below). These semi-circles were cut out of the old panel & welded into the new one to make it look 100% original. Marking up the panel itself was a pain. Everything had to be checked numerous times - bonnet had to close right, gaps at the sides had to be good & the wings had to fit as did the petrol tank. This was quite a difficult panels to get to lign up correctly all over due to the quality of the panel. A number of modifications were made around the petrol tank supports etc. One good thing was that I found the front bulkhead was 100% rust free :-)

Final pic shows the only repair needed to the heater channels and front inner wings. I also replaced the lower rear wing mount area (just in front of the swage line).

D/S Rear Quarter
The panel has been gathering dust in the corner of the garage since bugfreeze, so it's nice to finally use it.Same method as the passenger side, now all that's left is the rear valance & a bolt hole or 2 at the front. then it prep time. As above, make sure everything ligns up before you cut / weld anything - especially the body mount on the suspension. It's also worth refitting the running boards, door and wings when the panel is clamped in place to check that everything is where it should be. Cut the b pillar (not all the way through - just the outer skin you're replacing) using a fine hacksaw blade. The gap created by this will give you just the right gap between the panels for a perfect weld without the need for much filler if any. See How To article

Paint
The painted shell is now back & looks great - see pics below. (The white splatter visible on some of the panels is from the polishing mop)

Chassis rebuild
The body has been split from the chassis and stripped down. The only areas of welding needed were where the two jacking points have been removed (they are a big rust trap). The chassis and its bits were then blasted and powdercoated / painted by marawise treatment in Coventry for £100 - it'd cost more than that in wire brushes to strip & paint it yourself.

Build Up
This was done in 2 weeks as I needed to get the car to the trimmers for the seats and headlining & couldn't afford to rent a trailer & tow vehicle twice. 
Brakes - complete new twin circuit system inc t3 rear drums & front discs
Bearings - all new wheel bearings front & back
Steering - 4 new tie rods & 4 new ball joints (latter had been done last year)
Nice to work with clean & shiny stuff rather than rusty and oily :o)

Some build-up pics:

It's Legal !
The car is now on the road - finished just in time to provide me with grooms transport for our wedding in August.
There's still plenty to do though - suspensions mods, interior stuff & adding all the electrical stuff 

Major thanks have to go to Matt & Nige, my partners in crime & Kirstie for putting up with the mess & my absence

Tweaks

The project is still on-going - lots I still want to do to it.
The front tyres caused some problems. The car was so low with them on that the towing eye had to be removed as it was hitting the ground. This still left quite a gap between the top of the tyre and the arch. Luckily a mate needed some low profiles for his ghia so I sold those to him and got some slightly larger ones that fill the arches better and give a bit more ground clearance (too many speedbumps round here).

A 2/h autocavan stainless 4-1 exhaust and turbo tuckaway exhaust was added which shounds nice - not too loud but sporty.
A rebuild of the engine is planned for winter 2008 as the oil pressure is getting low - probably increase it to 1641 and throw in a different cam but we'll see.