So you’ve decided to jump on this 5cyl train? Great idea.. here is how I go about installing one into a mk1, some of this will carry to other chassis, some of this is NOT REQUIRED but rather how I like to do things.. I will try to differentiate that when I come across it.
Starting with a stock 07k I picked up – 
I am going to tear this motor down and do a headgasket (installing headstuds – not required) timing chains, water pump, thermostat housing, oil filter housing (stock will fit the mk1 with some gentle hammering on the core support to clear the cover), oil pan (adding a reinforced plates to the steel pan) . This is the timing kit I use for locking the Cam and crank down, there are several options but you are going to need one.
Now that the ARP headstuds are install ( you will have to take the cam ladder off to do this) seal the ladder back with an anaerobic sealer and finish the timing chain install.
Time to clean the block up and prep for paint, thankfully I had steam cleaned this motor before I brought it in and it was pretty clean, just some spots behind things like the accessory bracket and other hidden pockets of dirt to clean up.
With the block cleaned, and taped, I set a couple “dummy” parts to make it less of a hassle to mask, a spare valve cover (or if you know you are going aftermarket), a 3d printed oil filter housing I had for testing, etc.. TIME FOR PAINT!!
Using a ceramic based paint is a huge advantage in making it lay flat, and it has great oil/gas/heat resistance.. I have brushed ceramic paint on and it will lay down to the point you cant see the brush strokes.. EASTWOOD has a nice selection of colors..
Onto the REQUIRED transmission modification – only takes a couple minutes with a flap disc on a grinder.
The transmission (020, 02a/j) case will hit the timing case on near the bolt hole at the “front edge” of the block
You can see here that the case has a bit of an edge on it, and that the trasmission case is not even sitting down to the lip on the case
This picture on the right shows the timing case and trans case are touching where as the pic on the left shows a gap after we have ground the trans case down.
This last picture shows how much we took off of the top edge of the case ( its not alot but that top casting was symmetrical when we started). You will be moving most of the material from above the bolt hole but continue smoothly past the timing inspection hole on the trans case.
With the transmission dry fit we are ready to move onto the clutch and flywheel kit, and installing the trans to the motor.
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