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Mickey,
Back when Hector was a pup, I raced a E Production 356 in SCCA for a while and had similar issues. We ended up with a big front anti-sway bar, and added a bunch of front caster (maybe 4 degrees? it was a long time ago...) and although we used a panhard rod in the rear with the 356 suspension (sized to work with the front anti-way bar); with a VW rear a stiff anti-sway bar there would probably help too. I have noticed already in my Speedster with only about 100 hp, that it gets light in the front too at higher speeds and doesn't track as well as I would like although I know that some understeer is probably to be expected . I think in general the lack of weight distribution in the front probably induces some 'push' just due to the natural loss of traction from the design and inherent rear engine car issues.
I am certainly no expert on these cars and will watch the thread for some tips myself.
I am going to try the suggestion on the toe in myself.
Hey Mickey

Your rear wheel alignment is the cause of the car feeling sloppy. Mine was exactly the same, you feel a bit unsafe when you are travelling over about 50 miles an hour. I had my wheel alignment done by a suspension specialist and it was like driving a different car.

Is your car fitted with the swing axle? If so I am suprised that you need to elongate the holes! There is normally enough movement to set the toe in. Are you running standard gearbox mounts?

By the way I fitted a thick (19mm) front anti-roll bar to the front and a camber compensator to the rear. These certainly made a big difference to the cornering ability of the car but did nothing for the straight line stability. Elongating the holes in the spring plates will be quite fun!! Maybe you can elongate the holes on the axle side, What do the Pro's think about this?

Greg
First get your rear camber adjusted where you want it, and THEN do the toe. Adjusting the the toe will not affect the camber but adjusting the camber will affect your toe adjustment.

I just did my alignment in my garage using strings (what a pain) and I had to grind the rear a bit. On my IRS I had too much toe-in and had to grind the things the axles go thru. I didn't want to do the spring plates because it would make the mounting hole in the plates to narrow at the rear of the hole. I used a dremel and several small grinding stones.
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