What fuel to use? The short version is UNLEADED.
Why?

Because where other auto manufacturers only changed valve seats in the mid-80s onwards, VW already did so in 66. Same for valve guides. As always, well ahead of its competitors. Valve Seat Recession (VSR) is therefore not a problem. On older cars than 1966, if the heads were redone, or replaced, you’ll have hard valve seats, or should have. (If not, run unleaded, and you’ll need them soon enough anyway.

That’s a bit facetious, I know, hehe!) Octane rating is also not a problem on standard VW engines as the compression ratios are not high enough to warrant high Octane rated fuels to prevent knocking.
Why not LRP?

The least of the problem is because the additives in LRP cause spark plug fouling. More importantly, because the additives in LRP (oxygenates) can cause your engine to run lean, causing overheating. And because the oxygenates in LRP are an Octane booster which you don’t need.
The advice I was given now also makes more sense. The oxygenates in LRP vary widely, although I have been utterly unable to find any percentages of e.g. MTBE, MMT, ETBM, ethanol or other additives for SA. On overseas sites I have found from 2% and 3% to 7% and 11%. All these make engines run leaner (simply because there is oxygen already in the fuel additive and then it is mixed with air as your engine breaths) and thus hotter. It is not so much the oxygenates in the fuel, as you can set your car up for that, by rejetting, but the variation in percentage oxygenates that various fuel providers add. The VW pages I looked at said “beware of anything over 6%”. Now I know Sasol, for example, love chucking ethanol into their fuel, although again, I can’t find percentages. E10, in the US, is 10% ethanol. This stuff is particularly nasty to ACVW engines as 10% ethanol makes your engine run 4% leaner, and additions of up to 20% ethanol have been recorded!
All the additional stuff like timing adjustment, flame front speeds, throttle position, turbos, vacuum advance, altitude above sea level, etc. are a moot point. While making the discussion very interesting, they have little to do with the question at hand. One interesting point though: your required Octane rating drops by one point for every 300m elevation, cool, huh?
John Muir’s The Compleat Idiot lives up to its name by insisting that you MUST ONLY use LRP. If you feel you belong to that category, go for it.
My references: Engen, Shell, NAAMSA, Sasol, Wikipedia, Dave and Rob’s ACVW pages.
Oh yes, and how to check for knocking, go to 45 or 50 km/h, shift into 4th, put the hammer down and listen for the pinging.
