You REALLY don't want to do an engine swap. Just wait until you find the one you want. It will be FAR cheaper and easier to just pay a few more bucks for something that you can buy, register, hop in & drive/enjoy.
Not for nothing, but...All of this talking about engine swaps is not realistic. Do you REALLY want to do an engine swap? You don't even like dropping the motor on the bug - and that is CAKE!
Jack suggested that you find one with a 1600 because it is much easier for you to service & maintain. There is nothing wrong with a T4 powered bus, if it is properly maintained & all the parts are there, but they are a bit more complicated and parts aren't as easy to come by.
You DESERVE a nice bus that you can be proud of...all you need is to excercise some discipline, save up the cash and wait for the right one to come along. There is absolutely no reason that you can't have a nice bus...unless of course you have made up your mind that you are not worthy of this...
HOW BAD DO YOU WANT IT???
WHAT ARE YOU WILLING TO DO TO GET IT? (A-hem...2nd job)
Lots of places are hiring for the Christmas season. A 2nd job would easily help you to stack up some savings towards a decent bus.
Just a thought...
-B