1.8 liter, G60 is the name for the supercharger that resides on
    the beast, stock 158hp at something about 5500 rpm, torque nearly
    to match but soft on the bottom. As I said would be right at the

I had a '90 Corrado for a while, and would agree that the bottom end 
is pretty soft. I found my 8V GTI much more suitable for usable 
torque and power, except above 80mph or so, but this wouldn't be an 
issue with the Vanagon of course... :)

    place to have a G60 strongly in its power range but unfortunately
    mileage would be to put it lightly CRAP. Does spin up quickly but
    cranking up a 2700 lb sport coupe is a bit different from getting
    4500 lb of Wanagon a movin. The 2 diesels I have seen with GTI
    engines both turned a bit too fast, mileage was under 20. With
    the supercharger increasing mileage (Corrado gets 32+ routinely)
The *best* mileage I ever got on my Corrado was 42mpg CDN, which is 
about 35 mpg US gallon, and this was a long stretch of flat highway 
doing 60 mph... Average mileage for city/hwy was around 24-26 mpg 
CDN, so I'd say you'd be luck to see 20mpg in the Vanagon. 
Crappy mileage was one of the reasons I sold the car... (along with 
too many tickets... ;)

Around here, good used G60s are pretty rare and big $$$, so I'd say a 2.0L 
8V would be a better choice - spend the extra money on cams, 
balancing, etc.

Shawn.