todd, the pertronix ignitor II is the same as the I, but it has a few fancy features but basically does the same thing, the II has a saftey ignition on shut off, increases timing on start up, and a few other things. They just are a electronic points replacement, not electronic ignition, but they do work very well, and most importantly they elliminate those pesky points, and they never go out of adjustment. I've been running pertronix in my car and my speedy, no issues, starts eaiser, and timing is allways dead on.
As for the 1600 question, the above advice is dead on, typically jetting the carb from a 127.5 main jet to a 130, 009(if you can't aford the SVDA), nice set of wires, and exhaust make a 1600 wake up a bit, the ratio rockers do a bit more. It all depends on your driving style, if you wanna go fast, then build a big engine. I have a 1600 in my beetle, actually alot more heavy than a speedster, and i'm perfectly happy with it, it's just my putt-putt car, where driving it is a joy, and taking the long way is fun!!! The one thing about the 1600 is they run forever in stock form, properlly maintained can give you alot of service, espically if you keep the compression stock. I've got over 120000mi on my 1600 (that i know about!!!!) and it's just starting to get tired, but still runs like a swiss watch!!! When you start building bigger engines, with more "stuff" on them like full-flow, dual carbs, cam, higher compression, ect....you decrease the realibility aspect alot, and generally a performance vw engine greater than a 1835cc will typically only last 50000mi if your lucky without a top-end rebuild; unless you spend large $$$ on the build, even then there's twice the chance of stuff going wrong. If your not looking for huge power, and pure realibility, the 1600 is for you, need power? build something big!!! A good compromise without building a very expensive engine is a 1776/1835CC, they are a much better upgrade and give very good power, not sacrificing the realibility aspect too much and a much more worthwile upgrade rather than building a 1600 for more power, not to mention a much less expensive engine that does not require the high dollar parts, and works on stock exhaust, oil system, ect....
martin