Allen:
I'm going the other way from Jim-- I'm in the middle of ADDING a dry-sump system with all of the inherent complications. This change has required a new exhaust, and several other really involved bits 'o fabrication. I'll put up pictures, etc. when I'm done.
I haven't done a good job of documenting what I do to the car, but I'm trying to do better this time around the horn.
To answer your questions, I do have the coatings in the cylinder head on on my piston tops. I do not have the Hoover mods, or the piston squirters, although I would strongly recommend both. Next tear-down, I'll be doing both, along with adding a breather connection to the front of the case in the deck by #3.
I'm running an FK45 cam, and 48 Dellortos. I've been using a 1-3/4" sidewinder with the 2332-- but with the dry-sump conversion, I had a custom 1-5/8" A1 "low-down" merge-type header built this winter for the shorter primaries (they are about 34", compared to the sidewinders 44"). Packaging is a problem with this set-up, especially if you don't want the exhaust sticking out the back (I don't). For both headers, I built custom exhausts out of mandrel bends and mufflers from Summit Racing. I have an electrically operated muffler cut-out valve so I can run through mufflers the majority of the time, or an open exhaust if I'm feeling rowdy. The new exhaust is at the ceramic coater's waiting (the story of my life).
I'm using 911 motor mounts on both the transaxle and the rear of the engine. I made my "mustache" bar for the rear in heavy steel, and I'm re-making it in AL out of box-section tubing. I'm 75% done there.
I monitor all 4 cylinder temps with sensors under the plugs. I'm not dead-even like Jim, but CHT is always under control. I use the Type 4 cooler in the shroud, and an EMPI 96 plate cooler with fan and Mocal bypass thermostat. Oil temps stay under control here in the Midwest (hot/humid summers, but not Texas-hot). I'm using welded VW castings for the heads (extra finning as compared to bigger heads) and a DTM.
It's summer, and I'm still on jack-stands, but I'm making some amazing headway. If I was starting with a totally clean slate, I'd do a Type 4 with 100 mm + bores, and run a Tangerine Racing tri-Y and exhaust. Rich D. had the right idea. I'd dry-sump it, and never look back.
As it is, I'm deeply into what I've got. FWIW, Jeff Denham in so-cal is doing modified Type 1 AL bubble cases that he's modified for 4" bores. I'm sure LN would do some custom 101.6 cylinders if you asked. Add some JPM (from Sweden) MS230 heads (for some insane amount of money) and you could have a legit near 3L Type 1. It'd only cost about $20K (insert eye-rolling crazy-man emoticon here). I'm holding the line at what I've got.
Good luck. This is the deep end of the pool, and good information is hard to come by down here.