About 8 years ago I did this swap with a diesel vanagon. At the time I had a
rabbit GTI (1.8L low compression) for parts. I bought the Diesel vanagon for
$250 from a repair shop who was stuck with it. All the gas engine parts went in
very easy, and the other diesel parts went the same. Only a few special parts
had to be made, mostly brackets and stuff. I latter sold it to a friend (still a
friend now) who is driving it even now.

Can this swap be done... Yes.

Can it be done today for low cost? ... Getting harder as the years go by. The
diesel parts are just not out there like they used to be.