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Marty, I am not sure about tapping out a type one case to fit in a type three dipstick so I won't comment. I have been told that you can install an engine without the rrear hanger. I am assuming that this is OK. This would make it like a bug. I have never attempted this so I would like to warn you that VW probably installed that rear hanger with a purpose. What I am most concerned with in this swap is cooling. You are obviously not going to use your type three tin otherwise you would have the rear hanger at the top of the tin. With the Type 1 motor you will not have cool air directed straigt into the motor via the bellows. Given that type 3's run slightly hotter than type 1's anyway I would be scared to just set a type 1 in there without directing air straight into the air intake at the rear of the shroud. NOw that I am done lecturing I will state that I have seen this conversion done in one of the American Mags and I thought it was pretty darn cool. It was ashow car though and I don't know how functional it was. I liked the look though. Is it possible to to drill and tap a type I motor to use the type III breather/oil filler assembly? How important is the rear engine mount? I'm talking about the upper one on my 68 fastback, not the lower bar on the later models with no frame horns. Thanks, Marty