I think that a 115 hp 2 liter inline 4 engine is a vast improvement over a 67 hp air-cooled engine.Worth the extra work : more power , heaters that actually work, improved engine life, better reliability.�Of course there are many more tasks involved such as cutting a lower radiator hole in front, running pipes and hoses front to rear, removing the dash for a water-cooled airbox and heater core, splicing in a engine harness, and mods to the transmission.�The air-cooled trans is ideal for the Diesel or gas conversion.
True, a rebuild is easier, and that may be the reason to keep it that if it works for you.�Since I converted in 1995, and upgraded to a 2 liter ABA in 1999, I'm running on the same engine nearly 12 years. Nothing but trouble were air-cooleds for me, except the venerable Bug.
If your air-cooled has been running that long or longer , less power to ya!
Robert1982 Westfalia 95 Golf engine

--- On Sun, 3/11/12, Jim Morgan <JM060356@AOL.COM> wrote:

From: Jim Morgan <JM060356@AOL.COM>
Subject: Re: 81 Air cooled... Engine conversion options??
To: vanagon@GERRY.VANAGON.COM
Date: Sunday, March 11, 2012, 10:14 AM

My 2 cents worth.
Just rebuild the air cooled engine. The cost and time of a conversion are
way more than what the van is worth. especially TIME!

In a week you could have it back on the road probably running better than
it has in a long time and spend under a grand if you diy or havegood
friends.

just my .02 worth.

Jim Morgan
80 vanagon "stink bomb"
74 super beetle