I got the engine back in yesterday. The reinstall was fast, smooth, and uneventful. A motorcycle jack under the engine takes most of the drama out of the process.
I finally got to install the '63 heater mufflers. I had to improvise a substitution for the insulating ring (311 255 379 B) that the VW Workshop Manual advises be installed. I found some self-adhesive silica insulating tape at McMaster that should do the job. Supposed to be good for 1800° F.
According to the Workshop Manual, without insulation here the muffler can get too hot and burn.
Close to having it back on the road. I have a few loose ends to take care of and I have to see if my 6V battery will hold a charge (unlikely) or locate a new one.