1982 Diesel-powered Westfalia Vanagon. This is a vehicle I have lusted over for several years. The main reason that I wanted this specific model was the engine conversion possibilities. You see, the
Vanagon diesel engine
is basically the same engine as the Rabbit diesel, just tilted over on its side. And since the VW diesel engine is similar to a VW gas engine, I have always wanted to install a Rabbit/Golf GTI engine in a Vanagon.
Saturday, October 26th, 1996: I removed the diesel engine from the Vanagon. I decided to remove both the engine and the tranny together as a single unit.
The collapsible engine hoist that I bought from Harbor Freight Tools was a big help in removing the engine. 
and separate them once out of the Vanagon. I also removed the muffler. If I had to do it again, I would remove the muffler while the engine was still in the car. I also removed the alternator just to get another spot to attach the hoist's chain to.
gas engine from the donor 1986 VW Golf. Removal was pretty straightforward, with just some minor "persuading" so separate the engine from the transmission. Now the task of transferring parts (exhaust manifold, oil pump & pan, etc.) from the blown diesel engine to the gas engine can begin. I also plan on replacing the O-ring seals on the fuel injectors.
I also snapped a few pictures of the diesel 4-spd manual transmission. 
It is essentially the same as the gas-engined models, except it has different gear ratios, bell housing and input shaft. I will be swapping the bell-housing and input shaft over to a transmission from a gas powered Vanagon before re-installing the engine.
Saturday, November 16th, 1996:Got a lot of work done today! I started by installing the oil pan & pump and exhaust manifold on the gas engine. I have decided to retain the stock diesel exhaust system, as opposed to fabricating a custom exhaust for the van.
As you can see from the picture to the right, the diesel manifold (on the left in the photo) is quite different from the gas manifold. There is no doubt that the diesel version is much more restrictive than the gas exhaust. While this will probably hurt the performance slightly, it will make for an easier install. If I am not happy with the power after test driving, I might consider swapping then. I also replaced the fuel injector O-rings. The gas engine is looking pretty complete, and will be ready to install next weekend!
Fellow Vanagon Listmember, Ken Wyatt, found it in a salvage yard and shipped it to me for a very reasonable amount. Thanks Ken! I took some pictures of the gas and diesel transmissions side-by-side so the differences would be visible. Note the shapes of the bellhousing to accomodate the different engines & starter motor locations. On the diesel powered Vanagons, the starter is on the top of the trans, and on the gas models, it is down on the side slightly. The gas trans also has thicker and more pronounced ribbing on the case.