Here is the totally rebuilt engine. He took it all the way down to the block, had it machined and a bunch of other technical stuff, then built it back up using the proper parts. Before it had some stuff that wasn't original/correct, but now it's all good.
Then he removed all the fenders, doors and hatches and started repairing and repainting the body.
Teen1 chose the original 1971 Volkswagen yellow. I think it's a good idea to keep it original. added later: It's called Shantung Yellow.
We are all getting excited about the bug here Amongst The Oaks. Especially Teen1!