Hi, as oppossed to the Water cool, air cooled core (Crank, case, cam, rod)
are more solid, durable and reliable (if properly maintain and cooled). In
my small and very humble westy experience, i found out (sometime the hard
way) that older T2 engine where better built. Many here would not agree, but
i have my sources. I also have a open / split 2.1L Wasser and a 2.0L Aircool
engine in my garage, both ready for rebuilt, both have about the same
milllage. (This is open for discussion! lol)

Anyway, what i am trying to say is have that engine truly and carefully
measured (crank, cam, rods wear), for sure you will need fresh heads, but
maybe the core is more goood than you think. When i openned my core (lately)
on my 1.7L, i was amaze how good were the internal parts, only new heads
were needed.
http://www.benplace.com/engine_73/engine_bay1.jpg
http://www.benplace.com/heads.htm

So before you buy a "Somewhat" rebuilt engine, why not put new heads and
have the rest check. About the leaks, it's a VW! soon on my site i will put
all the tricks i have gathered to get rid of those nasty leaks.... over 150
pictures to come...

You cannot believe what a pair of fresh heads does to an engine.

Cheers, and merry Christmas!
Ben
http://www.benplace.com/