I've never heard of anyone doing it, but anything is possible.

You would have to fabricate some way to bolt the engine to the transmission and chop away part of the body for clearance . . . or perhaps install a drivetrain from an old Fox and set it up mid-engine.  Any way you go, there's going to be a LOT of cutting and welding involved.  You've also got to install a radiator and water lines.  Any way you go there's going to be a lot involved.

I do know of one person who put a rabbit diesel engine in an air-cooled Vanagon.  Well, actually, in two Vanagons.    :wink:   The key component there is the bell housing from a water-cooled Mexican bay window bus . . .