You have a VW reman engine with AMC heads?
How can this be?
It sounds more like you had the engine rebuilt at VW and they used AMC
heads.
If it was a genuine VW reman the warrantee would have been 12 & 12.
Retorguing the heads is not an unreasonable request, nor uncommon.
Most top notch repair shops would have required that you returned the
vehicle and done that for you anyway.
At this point you could give it a try, but I believe that once the
coolant has chosen it's path through a gasket sealing surface it will
remain leaking at that point.
What would cause this situation?
Two things;
Improper torque on the heads.
Improper sealant on the gasket.

RC