Welcome,
Check out the 'small ponies' forum for help on the 3.8.
Question, which body are you running on the VW? I had a '70 fastback in college. Friend had a nasty "little" 2180 in his '65 notch. That thing walked all over 350 chevy's.

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1997 Mustang GT "The Freak" - 13.80 @ 101.70, 2.07 60'
1995 Honda VFR750 - not much @ really fast (actual data pending.)
1964.5 Mustang 289
Rice Haters Club Member #13