My mate is looking at a 1966 beetle vin number 197760103 and engine number T2 06 0828
I think it's a 1967 model with a 1600 cc motor I'm I right

Going by the VIN, its a 1967..
Sorry.. cant help with the engine number...

Going by: http://www.clubvw.org.au/vwengines 

Looks like a 1600cc Type 3 Engine...

T would indicate a flat Type 3 motor that's been converted

Your chassis number that starts 197 tells you it's a Type 1 (Beetle) made in Australia (9) and it's a 1967 (7).

Almost 50 years after they were built, it would be very unusual nowadays to find a VW still with its original engine. Originally the car would have had a 1300cc single-port engine, but nowadays - could have pretty much anything.