<Also I have been told that the best long-term solution is to replace the 
engine with a Golf engine and conversion kit at the cost of around $5500.� Is 
this a good idea, and does that sound like a reasonable price for that job ?�>

IMHO, the Golf replacement is the way to go - I did, and I like it.  It's 
also a new engine, so van life is maximized (not to mention POWER).  If you 
have any mechanical aptitutde, you can DIY the Tiico setup for around $4000.  
There are other alternatives, like the Subaru engine, too.

Bill Marshall
85 GL Tiico
PHX AZ