First of all, you can get the timing belt+tensioner+rollers+water pump retrofitted with the 2003 parts (assuming you have a 1998-2002 New Beetle or 1999.5-2002 Golf or Jetta). And, the parts that you need to buy are the exact same as what you'd buy to do a timing belt on a 2003, and you do the change normally. Plus, most of the vendors that are liked on TDIClub sell water pumps with metal impellers, not the plastic impellered crap that VW sells.
2003s (and newer) have a 100,000 mile timing belt, 2002s have an 80,000 mile belt, all older manuals have a 60,000 mile belt, and 1998-2001 New Beetles and 1999.5-2001 Golf/Jetta autos have a 40,000 mile belt.
If you want a wagon, be prepared to pay out the nose. 1996-1997 Passat wagons are super rare (1500 US-spec TDIs built, I hear), 2002-2005 Jetta wagons aren't common, and 2004-2005 Passat wagons aren't common either. All of those wagons are often selling for more than they sold for new - even 1996s.
And, yes, those are your only choices for TDI wagons in the US, unless you build one.
The whole 1.9 vs. 2.0 thing... the 2.0 is only in 2004-2005 Passats. All other TDI engines in the US are 1.9s. The EGR issues are mainly because of the fact that these engines have an overactive EGR due to the US emissions regulations. Proper method of fixing it is to get Euro firmware put on your ECU, and it's a good excuse to get chipped.
And, TDIClub is a must.