No, they're not the same ratios, mine is a close ratio box whereas yours is the long ratio economy box.
Changing piston rings isn't too hard, I just managed to screw something up last time I did it. My advice is take it a piston at a time, change the rings and big end bearings, refit the piston, make sure the engine still turns, change the next set, check it again etc. Don't need an engine lift to do it, it can be done in situ, although it's nicer to work on an engine if it's out of the car. Basically you need to remove the head (I wrote a guide to changing the head gasket on a mk2 without doing all the pissing about haynes tells you to, it's in the power train forum under 'Head gasket fixing' - should help with this bit.), which will allow you to see the top of the pistons and remove the pistons through the top of the engine. Then you remove the sump (no problem, about 30 10mm bolts, I'd recommend getting a 1/4 drive socket for this as you won't get in to the bolts under the clutch cover otherwise. Make sure you drain the oil first

) and then you can get to the big ends, just a case of unbolting the bearing shells and tapping the pistons upwards with the handle of a mallet or something. Number 1 piston isn't easy to get to past the oil pump, but you just have the turn the engine so the con rod isn't facing straight down, it's not really a problem. Replacing the rings just involves prising the existing rings off (try not to break them in case there's a problem with the new rings), sliding the new rings in using feeler guage blades to slide them into the slots, smearing the piston with oil and tapping back into the cylinder using a piston ring compressor and the handle of a mallet. Change the big end bearings while you've got it apart, and then bolt the shells back together and turn it to make sure it's not siezed for any reason.
Doing it yourself you'll need to buy:
Piston rings (£20 from GSF, £84 from VW)
Big end bearings (£9 from GSF, £53 from VW)
Head gasket set (£25 from GSF, £84 from VW)
And a can of oil and antifreeze.
A garage would charge a good bit for this, for a start they'd use VW genuine parts so that's £220 straight away, plus a few hours' labour you're probably looking at £400+...
One thing to bear in mind once you've done this is that the new components will need running in, so that means a few hundred miles worth of careful driving, no labouring the engine at low revs and no high revving either.
The oil on your 4th plug could easily be a piston ring, or it could be an oil spill / leak. One thing I found was when my fuel pump started leaking oil it all drained straight into number 4 spark plug, thought I had a bit of a crisis when that happened..
Very early mk2 polos have a limiter, and mk3's have a limiter, but the majority of mk2's don't - do /not/ try to find it! I've heard of mk2's being taken to 8,000 rpm because they have no limiter - really not a good thing to do to a little engine of this age!