A really bad shop rebuilt it several times. The last time I got it back and the compression was barely 350. After less than 5000 miles I was below 225 and could not run. When I opened the motor I found Oil Squirters in the oil pan, loose mainbolts and several bad threads on all bolts. I have no confidense in the VW machine shops near me.
With 30 years wrenching I measured, honed and reassembled the motor with the right rings and many new bolts. It runs great but there is way too much back pressure. The vent top blows hard and the oil dip tube sprays oil on the hood. I have heard this same complaint from many of the Samurai conversions. With the motor as worn as it is I will probably be swapping in a 1.9 and using my 1.6 turbo setup. Power is no longer a problem as much as reliability and MPG. I am getting about 35 MPG now with 30 inch tires. Pretty good for me. The constant oil dripping is no good. Driveway is really looking bad now.