Cool... A bug with HID!
The pre 2003 A3 headlamp looks like this:
It does contain turn lights as well, which u will not need... Would u even have space for them? That's a cosmetic design question you can find out. I'd use a graphical program like Paint Shop Pro to find a decent disign.
Electrically, there should not be any problems wiring it up. As far as I can remember back from my high school days, the bug uses H4 style bulb (at least in Norway), so just crunching a bulb and making a harness as described on faw is not a biggy, but it will take some time.
You refer to "kit" in your posting.... I'd suggest to stay away from buying a halogen headlight and then upgrading it with Xenon afterwords. You are starting from nothing, so using a OEM HID headlight will give better beam, better mechanics stability, less prone for water intrusion etc.
The prices on the H7 Hella 90mm is 40-50 Euros in Germany. They are turnable for right and left hand driving. I have them myself, and they are great, but I would not advise to upgrade them to Xenon. Osram has 65Watts "+80" bulbs that would be the brightest you can go in H7 Hella 90mm. The other prices you mention sounds horrific, compared to evrywhere else, but I have heard that from other builders in Austrailia/New Zealand as well before.
hope this helps
