1970 bug, internal engine questions
 

First off, Hi.I amthe 3rd owner of this car in our family.10 years ago, Ihelped my grandfather tear this car down and restore it completely, then he gaveitto my wife and I as our wedding present 3 years ago. I am no stranger to classic cars....but this one is not my typical project. I'm typically a hp gearhead...but I am hooked by the VW. http://img.photobucket.com/albums/v6...w/DSC02464.jpg

This particular car is an original convertible, has the automatic-shift stick, and has 75,2xx original miles on it. My grandfather's brother put a '40 Ford hood on this car about 25 years ago...and it has remained on there ever sense. Different, but looks good.

Anyway, I have a particular engine question for you vw gearheads. When changing the oil this spring, this piece came out in the oil drain.

http://img.photobucket.com/albums/v6...w/DSC02463.jpg

http://img.photobucket.com/albums/v6...w/DSC02462.jpg

It is hard rubber (or just soft rubber that has been subjected to heat for 75K miles...) and looks to be about 3/8" to 1/2" in diameter if it had the rest of itself. From my experience in tearing down chevys and dodges...this looks like a typical o-ring gasket that goes around the valve stem. What would this o-ring be doing in a VW engine? I don't have any smoking issues, it runs tops...but this does have me concerned a little. I was planning on yarding the motor next winter and doing the rebuild myself on it....but I am trying to gauge if I will have to be doing this rebuild sooner if something is coming apart in there. Any advice you can offer will be appreciated.

HB1