1994 Intermeccanica rebuild Motor suggestions

I have a 1994 Intermeccanica project. 1963 VW chassis. Car has been in storage since 2001 in Monterey, CA.  It has a bad #4 cylinder and needs a refresh. I have seen other cars with motors from 1600 to 2276. What is the forums opinion of a good motor size for this car that retains the heater. 

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