The revs are high due to using a 5-speed Diesel trans. it does give you the ability to use the higher power band and usable torque, so probably a fairly good match.
By contrast, my Westfalia has a 2 liter ABA 115 hp engine and a 5-speed gas transmission with a 4.57 R&P
�
With this transmission it's rare to ever go above 5,000 rpm.
So , at 60 mph, about 3,000 rpm .At 70, about 3400, at 75, 3600, at 80, 4000, all��in 5th gear.
�
Everything is stock. 
When i finish my replacement engine, it will have the mild cam.
The 2 liter doesn't buzz like the 1.8. longer rods have less side to side travel which accounts for most of the vibration in the 1.8. 
�
The other feature I like about the 2 liter is the durability. Ten years , and still running at 238,000 miles. 
The 93-95 models have forged cranks and oil spray nozzles that cool the pistons.
My 1.8 suffered a rod failure at low mileage shortly after i did the conversion in 1995, and so if you can get a 2 liter block, do so.
Two weeks after�I got a 2 liter as a spare, my 1.8 blew a rod.
�
Robert
1982 Westfalia 2 liter 95 Golf engine
�
�
Robert

--- On Fri, 12/25/09, Don Hanson <dhanson928@GMAIL.COM> wrote:

From: Don Hanson <dhanson928@GMAIL.COM>
Subject: some observations on the power of an inline VW 1.8 liter (Rabbit, Golf, Jetta) gas..
To: vanagon@GERRY.VANAGON.COM
Date: Friday, December 25, 2009, 10:37 PM

� I finally put a tach into my 5sp inline 1.8l Gas VW (92 cabriolet) 84 low
top faux Westie.� Went for a drive this afternoon and watched the needle...

� At 55 I am turning about 3100..60 about 3400 in 5th gear. 70=36-3700rpm...
That seems to be right near the bottom of the power band of this motor, with
it's mild aftermarket cam and free-flowing exhaust.� If I shift back to 4th
it takes my revs right into the "meat" of the power..about 3700 at
55mph..The motor seems to pull strongly till 5500 rpms then tapers off a
bit.� It will happily pull full throttle off idle....but I cringe, treating
a small motor/large load like that...I didn't have a choice in my old air
cooled 36hp splitty bus, but with the 5sp...I try to not lug the inline 8
valve 1.8 liter.� I'm guessing I should limit my rpms to about 6500
max...maybe about 6000 except in rare cases...

� So, when I was driving 'by ear'...I was usually shifting back (5th<4th) at
the start of big steep climbs when I got below about 60...probably putting
my rpms at about 4200, just into the higher half of the power...From that
speed and rpm range I can usually accelerate up to 75 but I find it 'better'
to just hold 65mph in 4th gear during long grades, to save wear on
everything....No real advantage in winding out the little 'mouse
motor' because if I shift up to 5th again at 75mph (~5000+rpms in my 4th
gear)...my speed will slowly fall back until I decide to shift down as I get
near 3000rpms or so...The motor feels unhappy...no, more like unproductive
at anything below around 3000...Though it's fine to run along on the flats
or in the city at 2000...I� feel like I'm being needlessly hard on it if I
have to accelerate unless I shift back and raise the rpms..My 5th is more of
a cruising gear...not much acceleration or climbing in 5th..but a quick
'snick' back to 4th puts the engine in it's "happy spot" for power...

� Right around 3500 there is a 'semi-loud' band...where the harmonics seem
to be a little "off"..not noticeable at 60+mph with the wind noise, etc..
but in the lower gears climbing steep hills, there is that one
narrow irritating rpm range.� Probably the "Buzzy" stuff that everyone talks
about with the Tiico engines...Doesn't bother me much as it only occurs on
full throttle load and I don't do so much of that..

� These numbers...not exact.� I was driving as I tried to track the tach,
not running on a dyno.

So for those who're curious about alternative engines in a vanagon...there
is a little observed info about one of the (arguably) 'original' alternative
engines found in vanagons...I'm happy with mine as my daily driver/work
van/travel and camping van..
� Don Hanson