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Just when i thought i was getting away from this forum i discover they have a car thread...
From experience i would say do not loose the airbox, they are a very well designed piece of kit for stock bugs. Replace filter if needed but leave it be otherwise, good link for more info;
http://www.vw-resource.com/air_cleaner.html
Another good reason not to use a pod is depending on your decklid is that if you don't have a Kamei rain guard water will piss into the filter overtime it rains.
I haven't touched bugs in a while but have experience with them and IMO your plan to get everything running as it should is a very good one. I love a well put together stock 1600 with some OG heat exchangers and you can make some simple improvements without making a mess of things, if it were me...
Ensure all original tinware is in place, this is vital for cooling
Replace plugs, leads, filters if needed with decent factory spec parts
Oil change
Ditch the points, I had several with Petronix ignitors and they worked very well but keep the stock dizzy and avoid cheap 009's
Use fuel filters but keep them out the engine bay!
Get on Volkszone and search threads on servicing/improving stock 1600'sI did twin Dell 40's of an Alfa and it was more hassle/cost than it was worth (although i'm aware how much more 40's cost now so maybe worth considering if you're happy to rebuild them). It's not a favoured Carb upgrade because of the longer manifolds but my best 1600 setup was with a Weber 32/36, 1 3/8" autocavan stainless exhaust, stock heat exchangers and a Petronix.
I wish i could get another bug but they're way too much money now!
Can anyone think of a reason for me not to replace the standard airbox on the bug with a pod filter type thing?