With the amount of custom fab work, you could now bodydrop this like they do in the lowered truck scene. Get a slammed look without major suspension issues. A bodydropped VW would definitely be unique. Not that this wagon needs to be any more unique!
So because you are using a BMW rear end, what are the plans for the running gear? Will that affect your wheel choice if you go with an adapter? Kick ass build thread. Its about time someone put a V8 in an older Passat.