Re-assembling an old VW engine I had in storage

This is an old beetle engine from a 1972 Super Beetle that I had acquired some 20 years ago as a parts car.
It has an engine code of AE with specs:
1600cc dual port engine with dual pressure release valves

I had rebuilt and run it in this car when it was fully restored during 9/1994 to 6/1995. It ran for many years but over heated and warped a head about 10 years ago, so I pulled it out and completely dis-assembled it for a later rebuild. The air cooling part was not adjusted properly and was not air cooling it, opps.
I then got the original engine from my 70 Beetle running and installed about 7 years ago. Sally and I got married in this car 4 years ago in May of 2006 and it would no longer start a few weeks later. I towed it to my dad's house in PA and it has sat there, safe and sound in his garage for the past 4 years. THANKS DAD!

And what is finally getting me to get moving on this and get the car out of Dad's garage and back on the road for my wife Sally to drive around? Well, it was a very large VW show in St. Petersburg, FL we traveled to the first weekend of May, 2010 on the Sunshine Treffen tour 2010 organized by Dan Stevens of the NY VW camping group.
There were almost 200 air cooled VW's of all kinds there and that started the fire up to get this car running again. I then was talking to Jon Kleckner, the Pres. of the LIMBO VW Club, over the weekend at a camp out and he is a skilled VW engine re-builder with the milling tools required to machine the block if need be. I was not sure how to accurately measure the main bearings to see if the block did need to be cut and I did not want to just through this engine together without being sure. That is what I did with the last engine and it did not run for 500 miles before having a problem, so I want to do this one perfectly, or as perfect as you can do it on a 38 year old block.
My gosh, hard to believe the 70 Beetle is 4o years old, I am only 46.