is it possible/resonably priced to convert a mk1 octavia vrs to 4 wheel drive and does anyone know who does it?

This topic has been covered numerous times, infact if you'd have scrolled down the thread list a bit further you'd have found this thread:

to quote myself

This topic has been covered several times.

Buy an Octy 4x4 (cheaper than a vRS in the first place)

Put R32 springs, shocks , ARB's ( or better ) and wishbones on ( the wishbone thread )

With the money that you'll save on insurance buy a vRS front bumper, seats and doorscards ( or better ).

Remap to exactly the same power output as a vRS.

You'll probably save £200/yr insuring a 4x4 over a vRS

Where to start on a 4x4 1.8T Octavia