I need help and advise, which engine should I use and/or where would
> you suggest finding a good engine?

This really depends on your budget.  And, your love of this particular
vehicle that you own.

If the car has no sentimental value, or you have not already gone deep in
the pockets for other repairs and upgrades, get another one and sell this to
a listee for a fair price who will install a new motor in it.  Buy another
one.

At minimum upgrade to a 2.1L engine. There is info here on the list.  The
Subie conversions are nice, but if you do not pull your own wrenches, forget
having anyone other than the person that installed it ever work on it.  It
seems garages have too much work already to fool with it.

As to the TIICO conversion, done one and driven one, it is OK, but not worth
the cost ($4 k and install cost more or less)

The best running vanagon I have driven ( and i have driven dozens of them)
had a Boston Engine big valve engine.  This thing was a screamer with more
or less stock components on it.  The price is less than $3k for the engine,
but it is a quality piece.

The cheap engines that are seen advertised are just that.  I have built
several type 4 and WBX motors over the last few years, getting parts close
to dealer cost, and it really is an expensive proposition.  You definitely
get what you pay for, and by all means get NEW heads and not rebuilt
ones................Not worth the couple hundred $$ you save in the long
run.

Adam P
81  Westy "The Brick "
70 Single Cab "Whitey"
74 Beetle "Ol Yeller"
73 Transporter (STILL at paint shop)
1988 Vanagon Wolfsburg
1976 Transporter (New CA bus)
1974 412 "Goldmember"
Used Vanagon Parts for sale (mostly aircooled)