Long time LSR Racer Tom Bruch from Iowa is putting a turbo charged 36hp engine in an early VW to run for one of the records that has been set up by one of the VW magazines. He will probably be at Maxton at least once this year and also might be running at Bonneville. I can probably hook you up with him if you want more info. I just don't know the specifics but I recall that one of the VW magazines has set up a class structure for records. They are different from ECTA and SCTA classes and specificly for VWs only. I suspect you run in the Time Only class . . but I am not sure.
As far as running in one of the 'regular' SCTA or ECTA classes with a VW . . well the records appear to be pretty stout already. One of the earlier posts mentioned running as a Gas Coupe. Problem is to be legit in Gas Coupe you must make one of three specific modifications to move you out of Production. They are Quick Change Rear, or Engine swap, or non stock supercharger. I don't know how you could run a Quick Change Rear in a beetle. The rules for engine swaps are pretty specific. Replacing a 40 hp with a 1600 might not qualify as a swap. The rule books use the example of different small block Chevys as NOT being a swap but swaping a big block for a small block IS an engine swap (assuming that particular model chevy did not also come with a big block). Exactly how that translates to VW engines, I am not sure, but I suspect it might mean running an engine from a 411 or 412 or later bus or Porche. Of course any supercharger would put you in the Blown Gas Coupe classes since there weren't ever any stock blown beetles.
The next possibility would be to 'move up ' to the Altered classes. You would have to make a few body mods but the quick change and engine swap requirements don't apply. I am not an official of either club but I suspect removing the front bumper would put you into altered.
Heck . . go ahead and bring the car to Maxton and/or Bonneville, make a few runs and worry about classes and records later . . . .