thanks for bringing this back up to the queue, i forgot two write again with a follow up...
so first of all, for future reference, the blisten upper mounting kit IS THE SAME as the CIP kit. so future peeps going blisten up front can get that kit and be done with it.
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Cohibra45:
sorry, my website is pretty out of date. i do now i have blistens, though i ran kybs for quite a while. it sounds like you're building a pretty serious (i.e. wonderful) car. jake raby's work and products are fantastic. i very nearly bought a TIV from him, and decided not to because i want to build my next engine myself for the pleasure of it (which incidently is a T1). setting up rear end with a mid mount and a kafer style brace is really important with the amount of torque you have, and is a great way to go.
as far as shocks are concerned, KYBs are a decent shock, and a good deal from a price/performance standpoint. Bilsteins or Konis are a much more serious (read, expensive) way to go. KYB GR-2s seemed fine to me when i had stock torsion bars, but when i went to higher spring rate SAW torsion bars i didn't feel like they handled it very well. KYB Gas-A-Justs might have solved my problem but instead i went to Bilsteins. i haven't had my Bilsteins to the track yet - i've been trapped in germany all summer for work, while my bug gathers dust in california - and while i'm not a good enough driver for shocks to improve my times in a measurable way, i expect them to effect the feel of the car when i push it. i am perfectly happy with my Bilsteins on the street, and have no reason not to recommend them. (though as you saw above, they required touch more to install that the KYBs, which are good to go out of the box.) Koni's are also an excellent shock, though i've never had a set on my car. i got my shocks from
www.bugsandbuggies.com who is the same people as
www.eshocks.com - which has the advantage that they both know shocks and aircooled VWs.
i got the german ball joints from a local bug shop (which there are a number of in the bay area california) so i can't recommend a distrubutor. they were pressed into original german arms, which hopfully had never been bent. : )
if you haven't already considered it, i really recommend going to urethane componets in the rear suspension: urethane spring plate grommets and urethane trailing arm grommets. for the trailing arms the bugpack urethanes that everyone sells are fine. for the spring plates, STAY AWAY from the bugpack stuff - half of them don't fit for a damn - and cannot be modified to fit. instead buy
energy suspension which are available through
http://www.suspension.com/volks.htm you still have to cut them down a bit to get the perfect fit, but once you do, they're great. use plenty of the silicon grease everyone sells that's specifically for urethane suspension components - i bought extra and really glopped it on - and have had ZERO squeak lots of service.
best of luck,
greg
there is a kit that you have to buy from billstien that will screw on to the top of your shock and all will be better. 
It would have made things alot easier. All you have to do now is come out and race with me 
