The engine and tranny drop out the bottom as a unit and it's surprisingly easy. Probably easier than just dropping the tranny by itself. In the time it would take to futz around rebuilding the block while in the car you could probably pull and install the engine 5 times.
Basically:
-Drain oil, coolant, unplug wires, cables, hoses, shift linkage, exhaust, etc. (that's the part that takes the longest!
-Pull front wheels. Unbolt axles. You've done this part before.
-Unbolt front and rear engine/tranny mounts.
-Slide a furniture dolly, or even an old tire on some cardboard under the engine/tranny, and slowly lower the front of the car down until the engine/tranny is resting on it's own.
-Unbolt the two side mounts. Easy to do from the top, although you will probably need to pull the battery. Make sure the ground strap to the tranny is disconnected.
-Have a couple helpers or three pick the front of the car up carefully while you slide the engine/tranny out. This is where a furniture dolly helps. It may be possible to do this with a jack by yourself but most do not go high enough.
-Carefully set the car back on stands, drink beers, rebuild engine, installation is reverse of removal.
Old VW's are great. Not only are the engines easy to get to, there is less crap to disconnect.
Good luck!
Brendan