Hi CMax,
I'm presuming you have the Devlin-D.
Two schools of thought here. If you are powering the Devlin with a full race 356 engine, then you follow 356 transaxle practices. The much lighter Devlin will pay off in extending the usable power band lower in the RPM range than in the heavier 356. The car will start accelerating at least a thousand RPM earlier.
This is dune buggy experience. Some buggies can't even use 1st gear in a stock transaxle. You have to start off in 2nd.
The 356 transaxle has the best ratio assortment. To compensate in the VW, you have to tune torque and powerband. You'll want them both to come in lower than in the 356.
In the VW, you'll find the offered ratios beyond stock are mostly for reduced RPM freeway cruising, or drag racing. The same is true with VW Type 1 cams. The SCAT C65 is one of the few advertised "variable RPM" cams, and it was intended for Super Vee. The SCAT C95 is the same, but for full-bodied cars. Here's what a C95 on a 2.2 litre dual single bbl Solex 44mm throttle bodies and 36mm venturis) can do to BMW 318's.
The clip is long enough to show there is no edit tricks. The E30 Bimmers come in midway.
https://www.youtube.com/watch?v=zvYgzPgBRaw
I don't know how much tire you can get under the Devlin compared to what you're accustomed to in the 356, and I don't know if you drive depending on adhesion or sliding.
A LSD dramatically changes the handling of a swing axle at the limit, adding adhesion and understeer at the same time. It may be this is the feel you want and in that case, you use a Porsche transaxle.
High power cars have LSD's for entirely different reasons, to stop wheelspin. It puzzled the younger 934-935 mechanics that the "under powered" 356's even used LSD's. They were not aware it started with factory cars and 356 handling became dependent on LSD for the best lap times.
Now, to conclude this overly-long response, the point is if you go Devlin-VW, 120hp, tune for a midrange power band, and with a 4.12 final drive and just stock ratios, you'll have a rocket. You'll make up in acceleration for what an LSD would have given you.
However, you'll always miss the beautiful 356 gearing, as Rancho (and the others) just doesn't offer the same Porsche ratios.
FJC
Here's what's in our close-ratio transaxle:
PROCOMP RANCHO PERFORMANCE TRANSAXLE
Super Differential (4 spider gears instead of two)
Aluminum Side Cover (stops flexing)
Welded GEM 3rd & 4th Gears
Steel Shift Forks, Hardened Keys
4:125 Ring & Pinion
Close Ratio 3rd & 4th
3rd 1.58 (stock 3rd is 1.26)
4th 1.14 (stock 4th is 0.88)
And our "long track" transaxle:
Super Differential (4 spider gears instead of two)
Aluminum Side Cover (stops flexing)
3.88 ring/pinion
1st) 3.78:1
2nd) 2.06:1
3rd) 1.26:1
4th) 0.93:1