new engine opinions: update

I've gotten a great response on this via email. I want to thank everyone that read through all of the different options and offered their opinions. I have some new information about the TDI option, and a 7th option that many readers felt I overlooked.

TDI update
Kennedy Engineering, aka KEP, has responded to my questions about an adapter plate, and have indicated that they can support either the original transaxle or the one on the floor of the garage (091/1), or the later baywindow transaxle (091). Since the bellhousing for the 091 can fit on the 002, I have more options. I'm not sure if that's good or bad at this point.
I also found a website for a guy in Australia that built his own under-mount radiator setup. I'll add a link here later, but it was primarily pictures with very little text. I've also received emails from a company over there (Custom Offroad) that constructs an undermount radiator. They've apparently done a lot of these, but mostly for Subaru engine conversions, and their customers go off-road... in the desert. Sounds pretty convincing that they work.
Last, someone pointed out to me that the TDI engine can be "chipped" so it puts out considerably more power, so I shouldn't have rated it second.

Missing option
A number of readers felt that I overlooked ordering an engine from "Boston Bob". He has a great reputation in the aircooled VW community and has been doing it for a very long time. His quality falls above the BusDepot/AVP special, and is probably on par with Jake (the Camper Special), but not as expensive. I'm sure there are subtleties between the finished product that each can produce that explain the cost difference. I know Jake has been experimenting with higher output engines and trying to build with near-stock longevity. As I understand Boston Bob's approach its: building engines that are closer to stock that last nearly forever. Bob can build more powerful engines just as Jake can build less powerful engines. They have different approaches. Regardless, Boston Bob should have been in the choice list as he offers an improved engine at just above BusDepot prices.

That's really all I have for today. Because of a family reunion event that is warming up in CA, the bus may not make that Lake Shasta trip. That may be for the best if his engine is in questionable condition and his replacement is not yet ready for install. I'll have to figure out a way of explaining it to Hapy....