@dubtch - I like the thought of a Subie, but If I am going to drive a VW then I want it to be all VW.
Drives me crazy when I see a nice Ford T bucket or a 50's or 60's with a SBChevy in it.
KC
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LOL that's cause every rednecks answer to everything is Mountain Dew and a 350/350 combo!

It's because of that I can completly understand your point HOWEVER....the best water cooled swap I think would be a Suby(long life and huge power potential). Costs way more than $300 though. The 2.0 will also end up with a higher price tag when its all said and done too, best bet would be to just build a 100hp type 1 with Megasquirt and EDIS(this equals drivability and power

),bolt it in and go then order a trans before the one in the car chucks a kidney at a cat!

Just my $.02
