I discovered the source of the exhaust leak. The right hand heat exchanger outlet pipe was rusted through. Both heat exchanger outlet pipes were rusted pretty bad, so I repaired the both.
I had to use a round hacksaw blade to cut the aluminum collar back to expose good steel to weld to.
The repair pipes reduce the diameter of the exhaust pipe a bit, and might reduce horsepower a little. I'd trade a couple of horsepower for the difference in cost of $12 repair pipes and $500 new heat exchangers.
Heater box good as new and ready for another 50 years of service.
This really pissed me off. I don't know how anyone can be so careless. This clown cross threaded the nut on a case stud and just kept cranking on it until he drove the stud clear through the other side of the case.
It took some tweaking with needle nosed vice grips and I had to clean the threads of the stud, but finally put it right.
I had to do some rewiring on the charging system. This car is a '65 body with a '67 engine that someone had put a 1970s alternator on. The '65 came with a 90mm generator with the voltage regulator mounted on top. 67 VWs had a larger 120mm generator with the voltage regulator under the drivers side rear seat. This car had been modified to use an alternator with a built-in regulator. All three systems required different wiring. The alternator was old and corroded and looked like hell and didn't belong in a '65 VW anyway, so I trashed it an found a new, proper VW type 120mm Bosch generator. To integrate the generator wiring into the existing wiring, I decided to put a solid state regulator under the passenger side rear seat and add the required wiring. Whom ever owns this car after I sell it will have a real WTF?? moment when trying to figure out the charging system.
Wires in the engine bay waiting to be finished.
I couldn't help myself. With the engine painted and reassembled with original German fuel pump, coil, carburetor, distributor and that ugly ass alternator GONE I was so excited I plopped the air cleaner on it and stuck some old heater hoses in place while it was still on the engine stand just to admire it. It would all have to come back off when time to install the engine, but it was worth the effort just to see it.
Getting close now. Tar boards are in place and the wiring is dressed and in place. I'll have to finish the ends of the generator wires once the engine is in place.
ENGINE IN!! Just in time. I took the car to the winter shop a few days later.
On to the interior!