1. jake showed years ago in testing that you want to leave those heater feed slots open.
Some kind of disturbance if they are closed causes a reduction in cooling.
Get a Vanagon shroud if you want to do it right.
2. 42x36 will force them to do new seats.
Any competent shop would address all of the other issues - cracks, plug holes, studs etc. even during a stock rebuild.
Get all of the jake valvetrain upgrades - bigger studs, solid spacers, swivel feet, etc.
Dressing the heads down with the better valvetrain hardware is a noble pursuit.
3. Try and find the top tins and breastplate from a 914.
it's like the t4 into t3 conversion was their intended use all along.
All the other tins will work with those 914 parts, at least Bus and 411/412.
Not Vanagon, though, the tins are a bit more differenter..
