My dad has a 82 turbo diesel vanagon, with basically a indirect tdi (tdi block rabbit head) it was a Jacobson engine. The best TDIs to use are the ahu 96-98 but the first thing you must get rid of if you are going to do a swap is that automatic. He gets 32mpg
But he played with his gears and put 15" tires on, a TDI probably does a little better.
Is there work involved yes, is the TDI swap worth it $&@? Yes!