looking at your bonnet I see a lot of oil thrown up from the belts, donk is not happy!
Ive also got a 1990 almost identical and Im in brisbane with the ABF conversion. While I love the ABF, I'd be looking at a more modern engine with parts availability, perhaps a 1.8T 20v or similar. There's very few mechanics that wanted to touch ours as is the case with most older hobby cars, so there's a lot of decisions ahead of you.
If I were to plan the engine swap, I'd be doing my steering, arms and suspension bushes etc, also transmission, clutches, gear shift, mounts and CVs which I found readily available at an Archerfield distributor. Id check heater matrix replacement, A/C options (you are in brisbane), also give the electrics and wiring a complete overhaul, under dash and create a good common grounding of the various ground wires. Have a look at lights while its all out too. Brakes are soft on ours and if you wanted an upgrade there are a few options out there, just make sure you research and get the right combination before you go that way.
I spend a lot of time at KMJ sumner park for parts from MK3s if you need the odd bits and pieces, the rest of the parts I get from VWheritage, VWspares and AVS in the UK.
I try sourcing parts here but it often ends up in the too hard basket,. There's a EURO shop in Byron that seems to know what they are dealing with if u need a specialist.
Ive just given our wiring some love and attention as I was to swap the CPS and it's behind the front engine mount. So I gave the wiring a good look and there's still room for improvement and its purring nicely. Next thing is to supply the CPS with 5V, not 12V and see if that helps, there's mention that the CPS sensors are gettind fried by 12V supply.
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