>I have never seen a 1.8T into the Vanagon engine bay? i would be curious
>seing pictures.

It fits well, but the deck lid needs to be raised about 1.5 inches.

Stephan in Sacramento is the "Vanaru of 1.8T".  Their OBD2
conversions are properly designed to use original components to pass
the California smog test.  (they even have a drive by wire gas pedal)

Here is a photo of a 1.8T in a Vanagon (scroll down)
http://www.vwvortex.com/artman/publish/printer_1965.shtml

Notice how they used a donor engine bay opening to make a new one 1.5
inches higher.   On one conversion I saw they used the area to the
right of the engine cover for a slim storage compartment.

Stephans shop info here:

http://www.stephansautohaus.com/vanagon-division/