The 1/2 VW engine of choice for the Legal Eagle without a doubt is the hand propped Hummel 45 hp built by Scott Casler. http://www.hummelengines.com/
Scott cuts the VW engine cut in half and machines it to accept aluminium NiCom cylinders with a 94mm bore x 86mm stroke for a total capacity of 1200cc. Weight will be in the ballpark of 84lbs (38kg).
The lead time is between 5-6 months so I have ordered now in anticipation of it arriving here in Australia before Christmas.