Checked the timing?
The overheating isn't "normal".... Have you checked the timing (both mech and ign)?
There is no bleeding proceedure for the MKIII; You really should just be able to purge any air with a couple heat cycles... if not the system isn't up to snuff. With that said, many still recommend bleeding by jacking the front of the car up as high as possible and then running it. I've never bled a MKIII. Either way if you still have gas in the air system after a few heat cycles you may indeed have a BHG and should do a pH test on the coolant.
Good luck with the car!
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