first off the lubrication system is in no way related to the fuel system so any vee dub shop should be able to help determine your first issue (oil leaks etc..) they well have no idea when it comes to tuning the car so I'd suggest a two stage plan. Vw place to get the long block sorted, dyno place to get management sorted.

" it seems to be empty then full "

Sorry dont understand :jesus

Is it you pour oil in and it is low then later full??

Where in Sysdney are you??

Vintage Vee Dub is Campsie and is probabally you best " one stop shop"

Click on OZ BUISNESS DIRECTORY in the banner above.
It lists a heap of places

Do you have an extra oil cooler and or filter? I used to have the oil level change in the car from cold to hot. As the cooler and lines would drain to the sump if the car was left standing for a while. Then once the engine is running the sump oil level would fall. (this wasn’t an issue as I have and extended sump) could this be an issue? I found that I run the engine for 15mins just to fill the lines and cooler etc.

That could well be the problem, i suppose it doesn't matter that much then as long as i keep the oil levels up then eh?
I do have an external oil filter. I have another question on changing engines. Eg putting a rotary in it! I suppose i should put up a new post for that? (It's all new to me)

[Edited on 4-11-2004 by MIK33P]

are you checking the oil on flat ground ?

By the looks of your picture, you would face that problem a lot (looks Great!) Yeah i'm checking it on flat ground. I may just not be waitng long enough for the oil to drain into the sump?

More importantly.....is it actually losing oil onto your garage floor? If not - then you should be ok based on the external oil cooler theory.

Squiz....