Thanks for the info guys... I had a chat to Pieter this morning, He's not sure if the prop/engine combo will work so needs to do some number crunching and will get back to me.
Here's a little more info on the project:
My KR1 has a standard retract system so prop length is limited to 52" hence the 2:1 gear ration I'm using. I'll be importing a special 2:1 gear set from Rotax, the gears have a helical cut to eliminate harmonics. If the 503 can turn a 52/54 at 3200rpm (6400 engine rpm) I should get about 160mph.

(The standard 2.58:1 ration will require a min 58/61 pitch prop which is too long for my application). The problem I have with VW's (I have a KR2 and VP1 with VW engines) they are heavy when you add starter motors and an electrical system. The Rotax is nice and light, has an electrical system built in and you can add a starter without adding too much weight. The KR1 has a 5meter wingspan so I need to keep it as light as possible.