I too have long been thinking about this. I have been on the lookout for a small 3 or 4 cylinder to put on a motorcycle. The hardest part that I can see with a project like this is transfering enrgy from the drive shaft to the rear wheel. It seems to me a right angle transmission would be necessary. That will probably cost more then the engine and bike alone. What ideas did you have about transferring power? I have seen a few bikes built with a diesel engine out of a Polaris ATV and they just used the centrifical clutch to transmit power but the drive shaft is a completely different configuration then the inline 3 or 4 cyl. engines I am considering.
In the case of the VW 4-cyl diesel engine one might use the original car transmission. Being a front wheel drive there are differential outputs to hook a drive shaft available parallel to the engine crankshaft or long dimension. One of these would provide a driveshaft path pretty much in the right location to intercept the left side driveshaft linkage of the original on the motorcycle I have. The engine would be tucked closest to the rear wheel in this scenario for best weight distribution and the lighter, alloy case transmission/transaxle unit would project furthestmost forward. I suppose the necessary liquid filled radiator and electric fan might find room above the transaxle unit. This power plant installed that way (lengthwise) would be a long package and require stretching the motorcycle's wheelbase by at least a foot.
To get power from only one axle output the transaxle must be opened and the 'spider' gears welded up to immobilize the differential action.
What I do not have determined yet is if the rotation of what I just described is in the correct sense, or would it yield a motorcycle with 5 speeds in reverse and one foreward in case they attack from the rear!
Don't have the vehicle GVW and powerplant weights figured either. It is clear that such a mod would turn what is a bike designed to carry a second person as passenger would have 200 lbs extra 'payload' capacity to handle a heavier engine and I would be relying on this fact. The end result is certainly then a one person ride unless a sidecar was attached. I just grabbed this nice bike because such opportunity almost never knocks twice.