Might be worth beg, borrowing, buying or stealing a copy of Tom Wilsons book. http://www.amazon.com/Rebuild-Volkswagen-air-Cooled-Engine-models/dp/0895862255
That was one of the first things.. Pdf of the vw service manual the big one.... Jake Raby video not too bad.. http://pages.ebay.com/link/?nav=item.view&id=252312436569&alt=web But here gets you loads of help and info and encouragement.. One of my shopping lists... But you need to measure crank and journals to know what bearings to order.. Lots of latex gloves... Cleaning stuff .. Diesel...buckets.. tubs bag and labels..more gloves...assembly lube.. Sealants.. A bag for your tablet to check Latebay for help from your garage and not cover it with oil ..tools loads of em! Engine removal.. And lots of other stuff...https://www.google.co.uk/url?sa=t&s...QJUFwhBCwEo0nx7ZQ&sig2=PD-6CYqISQeNygghSB6-mQ One step at a time.. I've probably wasted some money on jumping ahead too often without asking here first... Always worth checking... I'm pants at this but nearly there now... Just my sodding heads to sort to finish the longblock. Then the fun of finishing off and getting it running!
There should be virtually nothing, just a few wisps of oil fumes but if the rings are worn combustion gases will be passing into the crankcase and there will be a significant amount of smoke.
... and there quote a bit here too http://haysvwrepair.com/rebuilding-an-air-cooled-vw-engine-non-lego-toy-style/
Thanks everyone for all the great advice! As soon as I get home I will start the process of removing the engine to start the analysis. Quite excited about it! I will post my steps on here as I go