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Can a 02M R32 transmission be used with the quattro rear diff somehow?
If you insist on doing this in a MkII, transverse mounting the VR seems to be infinitely easier and likely cheaper in the long run even though the upfront cost of R32 pieces is higher.
Also, I suggest taking a look at this build if you haven't done so already... Not quattro, but is doing just fine nonetheless.
R36 Turbo MkII build
 
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