Sounds like a neat kit for the money. You can do it cheaper if you are good at fabricating (i.e. - hacking and rigging) but it souds like the kit lets you do the conversion but leave everything intact in case you ever want to go back to Type 4.
Creative Car Craft (Originally in FL, but now in Manchester, TN) makes a fiberglass filler panel:
http://www.creativecarcraft.com/notforbug.htm That's what Justin used on his. A previous owner did mine and he cut all the sheet metal out of the engine bay between the frame and rivited in a piece of flat shett metal, then rivited some heavy rubber around the cutout for the type one engine to create a seal. The fiberglass piece is a better way to go . . . looks better, seals better and like I said, it makes it possible to easily go back to type 4 if you wanted to.
The engine will bolt right up to the type 4 transaxle, but the input shaft of the tranny may be too long . . . you can measure it and cut the end off, or replace it with one from a 68-71 bus. I hear it's not hard to do, but I cut mine off. I'm not too familiar with type 4 stuff, but I "think" that somewhere along the line the starter gear on the flywheel changed . . . could be wrong there, but if it did change, you'll have to use an earlier starter (or one off a bug).