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A bunch.

First is size. The biggest Type 1 engine VW made was 1600 cc. The smallest Type 4 engine was 1679 cc, and some of the Bus engines were 2000 cc.

The engine case is totally different, starting with the metals used: Type 1 engines had magnesium cases. Type 4 has an aluminum case.

Type 4 comes from the factory with an oil filter.

The Type 1 engine has the cooling fan mounted on the end of the alternator shaft, and it's driven by a belt. If that belt breaks you need to get to the side of the road right now and change it before your motor melts. The Type 4 engine's cooling fan is bolted to the end of the crankshaft; if the belt breaks you will eventually be pushing your car home but you won't destroy the engine.

The Type 4 engine is a lot heavier than the Type 1.

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