[rustbucket]

In that case, I'd probably go with the subaru. Especially if you're looking at long drives. Someone may jump up to correct me, but I think the sube's a more powerful engine, more reliable at speed/power, and more than enough hp to push a bug.

For instance, a basically stock subaru is already north of 150bhp. If I'm not mistaken, it's close to 200. Not the WRX, just the turbo'd base model. You'd be real lucky to pull that reliably out of any T1 case. The T4 might handle that better, but you're then in the same price range. Non turbo'd. And there are a plethora of bolt on goodies for the sube. (Can make it even faster!!)

As for the modifications, I think you have to modify the rear apron. Installing the engine is a matter of getting the correct adapter from Kennedy. Guys put sube's in thier busses all the time. One of the guys on this board (from Australia I think) has one in his bug. Look in the gallery for his pic. Also, check the Conversion Perversion forum on STF. Lots of info.

Sorry for the long post. Not trying to sway you one way or the other. But if you're open to other engine possibilities, there are alot of options.
Don