Should i repair head gaskets or upgrade the engine?

[itchyfeet]

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Ran 300 miles after new head was fitted before it overheated and now as it sits in the drive, coolant just drips slowly from the new head.
Thanks for all the advice so far

if its overheated probably best do both

[LewisMac]

Thanks itchyfeet.

937carrera, only one side was done 4 weeks ago in order to get the new exhaust fitted. Had trouble with a bolt that was threaded on wrong. couldn't even drill the bolt out so fitted a new head.

[ajsimmo]

Tighten up the head bolts to 50Nm, now the engine is run in. Might solve your problem.

Good call, I never thought to question whether the head had been correctly torqued!
I really should have, because I've had a couple of jobs in where a well known (big-bore) engine builder had apparently torqued wbx heads to air-cooled spec of 30Nm (I know because I rang them and asked, I was told "er, whatever VW say it should be...30 I think". He didn't say what it was 30 of, so I assumed Nm. Even if it were ft-lbs it's only about 40Nm so still well shy!).
On one the leak was really bad so I removed the heads (tutting at all the unnecessary gunky sealant on the compression seals) and resealed it.
The second time I just torqued the head down, removing one nut at a time and applying new sealant, then 30,40,50 Nm. It worked and has been fine for over two years.

I really should read the question. This answer referred to compression leaks into coolant, not coolant leaks from water jacket, so soz. As you were.