Baron,
Go for it. You'll get different opinions here from everyone. But I can say the organizers like air cooled cars of any variety. We won an organizer's choice in 08 in Houston, the Karman Garcia I mean Gia won last year in Houston, the IOE winner in Thunder Hill was a bug. It is a lot easier to sell as a $500 car than say a BMW or a Miata.
I would find an earlier model beetle though, super beetles are harder to lower due to strut front end. You want an beam front end. King and Link or ball joint. You can lower the car yourself for $10 (the price of the adjuster and some cutting & welding.) I think in hind sight I would run IRS but we do ok with the swing axel, that is how we get the wheel to lift off the ground on the corners.
If you get serous drop me a PM and I can tell ya what I would do differently the second time and hoepfully it helps. Plus I am always learning something new at every race that applies to Lemons instead of Off Road where I started.
Git'r'dun
Organizer's Choice Houston Yee-Haw Its Lemons 08', DNF Houston Yee-Haw Its Lemons 09'
Ugly Class 3 Winner Houston Gator-o-Rama 10', Ugly Class 3 Winner BFE Colorado 10', Ugly Class 3 Winner Texas World Speedway 12, We got Screwed Winner ECR 14', Barely Finished MSR 14' took a few years off but trying like hell for IOE in 2017!