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[modok]

The "shims" are to adjust the play between the main bearing and the crank assembly.

Shims do not have anything to do with the bearing being loose in the case.
The bearing is not supposed to be loose in the case. It's not a moving part. Once it becomes a moving part that's bad news, days are numbered.

I'm not sure how to explain it any clearer but maybe somebody else can.

[rugblaster]

Run these things 50 or 60 years and then they just fly all to pieces.
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'69 Karmy, '69 Camper, Meyers clone, '65 drag bug, 10.78 @ 128 (sold it) '51 Dodge farm truck,
'09 MB E350 '18 MB E400, '65 Plymouth Valiant convertible and a '19 Ford F250 King Ranch (nicer, but dirty, farm truck)

VWoA factory trained line tech 75 till 90 or so
ASE Master Certification
VWoA Assoc. of Quality Technicians inductee (One of 25 in the five state southwest region)
La Confrerie des Chevaliers du Tastevin (San Angelo Chapter)
TCU ......GO FROGS!!!!!!

[Vanapplebomb]

Yup, the rear main saddle is completely pounded out. Best case scenario the case could be line bored and have the rear main saddle thrusts cut. Then you need oversize bearings. What bearings depends on how bad the case is beat up and how worn the crank is. Either way, you are looking at a total tear down and rebuild.

Typically, if a T1 case is that far gone, it’s easier to start with a new case because other issues are usually not far behind. Borderline false economy and gambling trying to salvage those old cases these days. If it makes you feel better, your issue is not uncommon with those engines. I have seen several of them just like that.
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1800 Type 4 Berrien 295

http://www.thesamba.com/vw/forum/viewtopic.php?t=487021