Im am with Mark..
Seems that the flywheel/PP/clutch isn't compatible with the beetle trans.
What flywheel did you use? (hopefully not the 914 flywheel) whats trans is in the car? did you ream the flywheel for a pilot shaft bearing?
This conversion can be as slick as glass with the right conversion pieces, and just so happens all but two of them are OE VW parts.
lets hope that the oil pressure light that was on in the video wasn't a reality- if so you have serious issues... Also, get rid of that single carb and convert the engine to upright, you'll lose weight, enhance cooling and appearance all at the same time.
This conversion is pretty much all I do, if you hit a brick wall, just call me.