The first car engine I rebuilt was the family 1959 VW bus, with the 36 HP 1200cc engine and crash-box 1st gear trans, in high school auto-shop. It had sucked a valve, which in turn knocked a hole in that piston as well as trashing the head. My dad found a used head and piston, and I did my first proper valve job as well as replacing the guides. I also was allowed access to the community college shop, where I bead-blasted the heads and case (never again

) and recondition the big ends of the rods.
The Holly/Weber was actually a Pinto carb; it was a progressive 2 barrel carb that was perhaps better than the 250 and 350 CFM Holly "Bug spray" carbs? It should be OK with a stock carb, but will run out of breath early.
The typical electric fuel pumps used on VWs were Facet pumps (square looking things), and didn't make enough pressure to require a regulator.
The axle nut does need a 5 foot cheater.

Make sure it is tightened back up after removal, lest the splines wear.
Most dune buggys based on the stock chassis, like the Meyers Manx, had the "pan" and therefore the wheelbase shortened by about 14", IIRC, which would explain the too long clutch cable.