Once you remove the restrictor, you'll have almost the same power as a Golf/Jetta of the same year (using the same injection system, be it CIS/CIS-E or Digifant I/II). About the only differences in the engines then is the orientation (the Fox's longitudinal vs. transverse) and the 180o turn from the air cleaner assembly to the throttle body.
The exhaust restrictor is a donut-shaped piece of metal found in the exhaust system directly ahead of the catalytic converter (or resonator if you own a 1987 or early 1988 Canadian Fox). If your exhaust is in good shape, you can just remove the donut, and put the exhaust back together. If it's rusty, however, you would be better off to get a similar donut (be it with a larger diameter opening) from an Audi.