[Vwdiesel] Looking for Advice

[Chuck Carnohan]

I recently picked-up an '84 Rabbit with a thrashed 1.6NA and need an
engine.  I have now come across another 1.6 engine with hydraulic
lifters in an '85 Jetta (obviously not the original engine).  In short,
the engine cranks right up and smooths-out quickly.  It hadn't been
started in a couple of weeks.  Upon closer inspection the oil is globby
as it passes over the plastic valve baffle.  There is no evidence of oil
in the oil or the overflow tank.  The engine smokes a bit when revved-
and continues to smoke some with rpm's raised (greyish blue) but not too
bad.  I can't drive it as one of the CV's is out.  The engine appears to
be a later model as it has the long dipstick and round plastic air box.
What do you all think about this?  It sounds pretty good- a continual
clunk sound that I couldn't track-down but I also couldn't hear it
coming from the engine core or valves with a screwdriver.  The clunk
sounded like it was coming from around the timing belt area.  Any input
would be appreciated.  I can buy it for around $500 USD.

Chuck