Timing belt recently failed on my 84 Rabbit GTI 1.8 8v curious if this engine is an interference or not. Can anyone shed some light. It's does run fine after new timing belt although i think it it out a bit.. Starts rough.

It should be fine as it's not interference. Recheck the marks, use the small 0 on the flywheel, not the V shaped notch which is for ignition timing.