Correct me if I'm wrong, but I think the diesel engine is the same as
the Rabbit? (my comments only hold true if vw put a rabbit/jetta
diesel in the vanagon).

> 
>    > 1) The first "injector" is leaking diesel from the threads (YECH!).
>    > Couldn't get a wrench on it. Looks like a "Special Service Tool".

A large, deep socket works great!  by the way, are you sure it's leaking
from the threads?  I've had plenty of leaks from the hoses that run
between the injectors.  the diesel then dribbles down and _looks_ like
it's coming from the threads (it will bubble from the heat).

> 
>    > 2) I was told the valves should be adjusted, and this would improve
>    > performance. Is this true? Is this normal periodic Maintenance?

I've been told to have it done every 15K.

I don't know about the pros/cons of doing the adjustment, but it's really
not a difficult job.  It takes two special tools (one for pressing down
the lifters, and the other to grab the spacers) which together should
cost less than $15 including regressive sales taxes.  Two other tools
you need are a set of feeler gages, and a micrometer.  When I was a
college student and owned my diesels, I would buy a standard micrometer
from Sears, use it to get the correct shims, and then return by saying
I needed a metric micrometer (they never have these in stock).

Going really slowly, the job takes about an hour (not including the
drive to the parts place that sells the 2 or 3 shims you need).

-Jim