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Not sure about the technicalities, but if I remember correctly, one of the engines came on later models and was more environmently friendly as it had lower emissions...other than that not sure what else...
I'm sure I read somewhere that GTI's before around June/July 2001 pay cheaper tax and after they pay around £175. Mine is March 2001 and I pay £150. Haven't checked my engine code
I believe the law came out in jan 2001, so most y reg cars will have to pay more for tax. Basically before then there were 2 petrol car tax codes, upto 1.3 and above 1.3. They then changed it to be charged on emissions.
On clublupo a while ago, one guy had an x reg tdi and was paying £150 a year. Another guy had a y reg tdi and was paying £50 a year!