Colm this looks good, although I would still probably move to the lower mounting hole on the upper 'A' arm and extend the upper tie-rod out to reset the camber. Couple of reasons. The locost only weights about 450kg and will have less body roll than the heavier beetle. Having the arm more upwards will ensure that you will never get any positive camber when cornering hard. The good thing is that you can drive it like this then try it the other way to gauge the difference. As I said before the shock plays no real part in how camber changes when the 'A' arms move up and down. What I would do is put a jack under the front of the car, take off the two shocks and then jack the car to the ride height you prefer. Then measure the distance between the two mounting holes and order the correct length shock/spring set-up based on this dimension. You will also need to watch what Poundage is on the spring. I would go for something around 180lbs to start with, or even 200lbs. Really it's trial and error, but the more important thing is the shock itself, ie overall length and maximum travel.
The other thing which I can't quite make out from the photos you posted is the actual position of the ends of the Steering Rack? The position and width of the rack is very important to limit Bump steer. You are very limited to the actual positioning of the rack due to the tunnel and frame head of the chassis. One of the most important things is that the ends of the rack (when steering is centred) fall somewhere on a virtual line draw between the pivot points of both 'A' arms. Not sure if you can make out my quick drawing below?
Something else you should consider doing is adding another cross tube to the lower 'A' arm as shown below. The lower 'A' arm takes 99% of the abuse and adding this additional bar will spread the load between the two mounting points better.
Overall...cracking job considering how tight for space it is in that area. Some small fine tuning will have you setting some nice lap times at Mondello next year!