Will the $100 big brake kit work with 13" wheels?

The short answer is maybe, but not likely. I'm sure it depends on the 13" wheels.

The center line to the high point of the caliper is 5 7/8" you would need 1/4" clearance. So you'd need an inner diameter of 12-1/4" at the inside of the wheel. The wheel profile is also not flat, it tapers from larger on the inside of the car to smaller towards the spokes. The tightest clearance on my 14" wheels with 30mm offset is by the spokes. That outside part of the caliper also has a smaller distance from center line (5-5/8") than towards the inside of the calipers where the cooling/reinforcing fins and fittings are.  I have over 1/2" at the outside point of the caliper ( by the spokes), but with the balancing weights, there is less than 1/2".  So theoretically it is possible that the big brake kit will work with 13" wheels but it would be really tight.  Caveat Emptor.

If you wanted to test it you could buy 1 rotor and 1 caliper, slide the caliper over the rotor, and bolt up your wheel with out it being mounted on the hub...allow for 1/16" between the rotor and the carrier.  If it doesn't fit, return the parts for a refund.  You may even be able to take a loose wheel to a local auto parts store and have them pull the parts and see if they provide the clearance for your particular wheels and offset.

New Wheels and Shoes

I found a great deal on wheels.  A friend from work sent me a post to some BBS look-a-likes on the local VW Board.  They are combo 4x100/108 14x6 with a 30mm offset.  The seem to fit just fine, although the advice I had been getting was to use at least a 36mm - 40mm offset.  I do get a light rub in the wheel well  on full lock.  I also had to purchase some new lug bolts and some centering rings since the mounts are hub centric.

I then ordered a new set of Federal Tires 185/55R14s.  They are pretty big compared to the stock tires 155/80R12s, but the overall diameter was still around 22", so it doesn't look too out of proportion to the car.  The lower offset also keeps the wheels from poking out from under the car.

Look for yourselves, I think the car looks like it's in character.  Must have more horse power now.