Hey Hotrod,
When in High School I took a stock VW pan & transmission ($125), bought a 1500cc motor - rebuilt ($325) my father brought home some 3/4" and 1" rigid pipe and my brother and I went to work. We built the entire roll cage, fuel tank bracket, everything. Bought a pair of old VW seats that fit the stock sliders that are welded to the pan, some Gates Commando tires (yes its been a while) and presto. An off road buggy on a High School budget.
Drove it hard, jumped it, bounced off boulders, and it kept running. I ended up having to install transmission braces after breaking the nose cone, not a big deal or expense. The tranny held up fine (stock). Now, if you build one off of a Baja body I would install an IRS transmission for many reasons, and have it set up right from the start. I would run an 1835cc engine until someone can prove the 2275 is just as reliable, separate oil cooler, roll cage, skid plate, etc. and a roof rack for gear. Better seats too, my back isn't what it used to be. The sky is the limit, along with your pocket book. Unless your nuts driving they hold up fine, real fine.
As a matter of fact I'm looking for a good starting platform now, good project for my kids too. Should be fun to head into the local mountains and deserts when its done, camping & fun. With the right tires they do well in the snow too.
Good Luck,
Tom