I'm swaping in a 914 engine into my bug, but I will be using a porsche 901 tranny, and a 911 style fan shroud.
the type4 and 914 motors are basically the same (in my understanding) with the exception of the heads and the oil dipstick placement.
so type4 parts and porsche parts, though different in price are the same thing.
since I'm still in the process of building my bug I don't really have any tips for you other than, consider upgrading your brakes. with the increase in HP you'll want better stopping power than the stock bug drums
What I'm doing, and would suggest to you, is adapting porsche 944 brakes to your bug.
I have a tech article translated from french explaining how to do this, but its for a ball joint front end, it probably could be done on a link pin front end but would require new hubs to be fabricated from scrach (this is something I'm working on, and possibly marketing)
tech article =
http://www.telusplanet.net/public/scage/9442bug.htm
VB