Tim
Lowering can be achieved by:
A) removing torsion leaves - highly unrecommended and unsafe;
B) adding weight in the front of the beetle - not ideal for handling, fuel consumption etc;
C) cutting the centre of the beam, turning and then rewelding - effective but not adjustable so if you didn't get it right the first time you're screwed;
D) Cutting cente of beam out and welding in adjusters - most common method - effective and can dial in ride height to desired level (slammed I take it) - best to use castor shims to get some straight line stability back though as the car wanders on highway etc;
E) Use dropped spindles - again effective but gives you 2 to 2 1/2 in drop - retains normal suspension geometry so handles and rides well but again not adjustable;
F) use combo of D and E so you can have your cake and eat it too. Most expensive but worth the effort.
Re. narrowing, I think I have replied to a previous post already in this section or the other tech section - maybe scroll down for narrowed beam thread.
http://www.vw-resource.com/front_suspension.html
...for more general front suspension info. Read read read....best way to learn before tackling it head on. Learn from others mistakes to save yourself money and heartache.
Alan