Yh can see all your points and that was the plan. But after a lot of thinking and head scratching I think Itl work out better for me in the long run to repair the gti. Firstly if I convert mine, I will have to rush it ina way as I won't have a car and my work is 20 miles from my house. So if i repair the gti I can take my time and do it right as il still have my 1.6 to drive round in.
Secondly I'd feel a LOT more confident doing the bodywork on the gti then gutting it and fitting it all in the 1.6, as I've done body repair and refinishing at college and now as said before work with metal daily, here's what I've been doing at work most recently.
http://s1106.photobucket.com/albums/h364/murrayminf/cobra/But as much as I'd like to think I know what I'm doing engine and wiring wise, I don't know much at all and would need a lot of help.
The only big things that need doing on the gti is a new rear arch welded in and bend up a pice to do the sill. I would just patch it up, I'd do it properly, cut all the rust out.