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You have two choices. Spend a lot more money than you expect, or change cars. It has never been cost-effective to make substantial horsepower gains on the air cooled engines. Back in the day, you did the math and then sold your car and bought a turbo. Now that turbo prices are beyond stupid, you look at other options.
If I were you, I’d strongly considered selling your car and taking that money, plus the money you would invest in the engine and gearbox rebuilds and putting it towards a 996 turbo.
Speaking of the gearbox rebuild, if your gearbox is in bad shape, a proper rebuild of that is going to scare you to death. You can easily spend four or five grand on a stock rebuild and add several thousand more for wholesale gearing changes.
Of course, you can do what a lot of people do and do a partial rebuild and never be happy with the gearbox in the entire time you own the car. That’s up to you.
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