So I have been trying to figure out where all the vacuum hoses are supposed to go.
After figuring it out thanks to this:
http://www.thesamba.com/vw/forum/album_page.php?pic_id=232306
I was able to get the engine running properly….sorta:
It needs to be adjusted, the timing is off and it idles weird, also there is black smoke coming out of the exhaust under load.
After the engine heats up there is LOTS, and I mean LOTS of white smoke that comes from everywhere:
After looking closely I was able to see that I am dripping oil from the Valve cover onto the exhaust and it is burning there.
After much consideration I have decided to drop the engine and do a partial rebuild and inspect everything to make sure it is up to par.