Lugging is hard to describe - I've tried before and it's one of those things like explaining what's so cool about riding motorcycles.
A good way of understanding "lugging" is to read Joh Muir's
How to Keep Your Volkswagen Alive—A Manual of Step by Step Procedures for the Compleat Idiot [long out of print]. (Remember, our boxer is similar to 1/2 the original Beetle engine, but with more complicated carburetion.) In a section titled "Through the Gears" in the chapter "How to Drive a Volkwagen," Muir writes: "The worst thing, next to not warming up the engine and over-reving, is to lug the [R65]. 'Lug' means to under-rev the engine with a load on it." The same warning came in the driver's manual of my first BMW, a 4-wheeler 2002tii—do not operate at sustained speeds of <3000 rpm. (It would both lug
and carbon up—as I learned with German speed limits during the first Arab oil embargo.)
A small-displacement, short-stroke engine (e.g., the Type 248 engine in the R65, as opposed to its longer-stroke Type 247 brethren) protests low rpm by making funny noises and issuing strange vibrations. (By contrast, my first auto, an old (even then!) 1954 Studebaker Commander with 3-speed-manual, 232-cubic-inch V8 (!), would, despite its small displacement for a V8, pull smoothly away from a traffic light at idle rpm because of its eight cylinders and 90-degree firing (with careful clutching, admittedly).