I like the design of the first frame, but since you're set on getting rid of any traces of VW, starting from scratch will probably be easier since you can put your parts where you want them. Design the frame around the stuff you want to run, so to speak. It's nice you didn't have to build your own jig either. With any horsepower at all, rear engined rails are a lot of fun to drive (and even scarier if one of your "nut job" buddies is behind the wheel!).

Are you actually planning to make this street legal when finished, or just use it as a toy?