I just had this procedure done on my 88 420SEL. I was told that the chain was still good, and that the rails still looked ok too. The other thing that I had done, was to have the valve stem seals replaced, as I was using so much oil, that it hardly had a chance to get dirty. Seems my engine isn't the only one to need new seals, so you might want to have this done too. I was not so lucky when the cam was inspected...it was groovy, and not in a good way. I ended up needing a new cam and rockers, as well as lifters. Ended up spending twice the amount I thought I would. Oh... and somehow, one of the pins that holds in one of the rails broke off, and had to be extracted - a process that was rather time consuming.
In essence: Replace the chain and rails, and do the seals too while you have the thing apart - it will save $ on labor later.
"...rationality of thought imposes a limit on a person's concept of his relation to the cosmos." -Nash
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09 Jetta TDI