I picked up the engine I ordered through VW today. Here are the
observations so far.

Engine case is "NEW". Brand spanky new, looks like same aluminum
material they used to use on the pancake type 2 engines.
Heads are rebuilt, German castings, date code still on them, 1989.
Flywheel is either new or an excellent metal spray build up job. Clutch
surface is ground, not milled or lathe cut.
Came with oil cooler, filter and both oil pressure switches installed.
Even has spark plugs.
Labels on Valve covers, Do not adjust valves.
Distributor drive gear is not there. No gaskets for installation. Maybe
there missing.  No water pump.

I'll let everyone know how it runs.

Dennis