Help me keep from wasting money on a 99 Passat

[sharpshooter33 at roadrunner.com (David Brown)]

here's the deal. I have a salvage yard guy that I get parts from.  He has a repair shop also.  He recently got a 99 Passat to repair....it had a broken timing belt.  He replaced the belt then checked compression on #1 cylinder. 0 compression.  He figures the valves are bent and stuck open.  Other than that the car is in real good shape. Looks like it was a doctors car or something.  Anyway he said he would sell it to me for $700.

It's a 1.8t 20V with a 5 speed Tiptronic automatic/manual tranny.  I'm thinking the tranny would be worth the cost by it's self almost. 8-)

Anyway I get to thinking I could replace the head or valves depending on how bad it is. I don't have any experience with anything past 93VW so I'm in the dark here about this Passat.  These are going from $5K up so I was thinking I could have a nice car for the wife or daughter(soon to have her license{shiver}). Or just sell it.

So I'm looking for any input on this project...to take it on or not?

Any input would be appreciated.

Thanks
David