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Fastbacker, here's a little inside knowledge from someone who's been there...
There's a saying about D-modified cars: that when d-mod cars are built the builder didn't read the rule book. So D-mod is usually a catch-all class for cars that don't fit in any other class. I know this because I made a d-mod super beetle. If you build it the way you are saying, the car will end up in d-mod just because of a type 4 swap and while you'll have a lot of fun at the autox you won't be competitive in the class unless you've got about 400hp/ton (just basing this off of the local d-mod cars)
That being said you will have a kickass street car, and if you take it to an autox you will get a lot of attention just because it's a beetle. But if you want to race competitively you'll be better off stripping the bug, going through the stock suspension, hopping up a type 1 motor, beefing up a bug tranny and racing it in FSP.
What I tell people who are building or planning to build cars is to start at the end of the project and work backwards. Figure out if you want a race car or a street car and then work your way backwards to the start from there.
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