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If it were me, I'd be looking for the engine from a late model vanagon which should bolt in there without too much fuss except for the water cooling. The added advantage of the vanagon is that there were fuel injected models and they had hydraulic lifters (I don't care what anyone says, solid lifters in a commuter car is a PITA). Being a decendant of the Type 2 engine, I think you could scavange many of the parts necessary from the Porsche 914 which had a 1,7, 1.8, or 2.0 liter type 4 flat four, and many were made with the 6 cyl engine so it should be reasonably doable (big "should" there) and there is at least information out there about going in the other direction (most people went 4 cyl - 6 cyl). I'd say go for the Type 4 engine directly but its intake system would be a bit outdated and has solid lifters and its not quite as advanced as the vanagon engine would be. With this setup, you also keep the low CG, boxer configuration, and german pedigree. I know I've seen a 3.6 bolted directly to the 914 transaxle so I'd bet the bolt pattern is a match.
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