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I would do it in the same way, because my budget is always too small to invest in all, what I want. The idea of upgrading the 1,6l is ok, but I would use 40mm IDF's, as you can use these carbs on a 2l - 2,3l Type 4 with HP up to 150, too! So you don't have to spent your money twice on carbs. Even the combination with a wild Type 1 cam and 44mm IDF's would work, but then you have to change the venturies and the jets for much smaller units in the carbs.
A good rebuild of your 1,6l to 1,8l with good heads and all the goodies you are planning to use is maybe half of the budget you need for a 1,8-2,0l Type 4, that is cheap-build. I would do the Type 1 at fist, then you have got an engine, that you can put in to drive, if you even want to upgrade the Type 4 for more. Interesting is the change from the gearbox, as I personally don'T know, how the flywheel of the Type 1 matches to the starter of the Porsche. Anybody an idea?
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