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Hey Axl,
Yup, that's a great idea.
Only *after* I had mounted the motor I found out that you can move the tranny a bit forward by flipping the tranny mount (you'll also have to modify the shiftrod mind you).
It also depends on the motor you use. This is a DOHC EJ2.5.
If you use a SOHC, or a 2.0, you'll have a better chance of not having to cut the fenders.
As to the ground clearance, with the small wheels I have (15"), I can forget about lowering the car at this point.
There are kits to raise the transmission as well (aircooled.net) so that might also be something I'll be looking at. There are also some very nice shortened oilpans available from Bug at 5 speed (I *think* that's the right name, check this board, there is a whole thread about them).
If you are building a custom frame, then you have many options. I would certainly look at incorporating the original motor mounts, or check with the Subaru-vanagon guys on some of the motormounts they are using.
Good luck with the project and keep us posted !
Rob.
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