It is done! I got the flange installed with my hose change last night. I didn't even need to bother saving any coolant, it pretty much all came out by itself before I started working.
Here is everything inserted into the part. The OEM VW water sensor worked just fine with the steel clip. I didn't even bother putting any sealant in there, and from what I can tell there's no leaking.
I found the 5/16 hose diameter 1/8NPT hose barb at O'Reilly's. I got a short piece of 3/4 NPT pipe for the other side and cut off all but about 1" of it. I coated it all very well with liquid thread sealant and assembled, tightening as much as possible. I put it all together and poured new coolant in the system over the course of an hour. If I had it to do over, I'd let the thread sealant set up for a few hours first. It seems to seep out just a bit in the areas where I used the thread sealant.
I may not have tightened down the 5/16 port well enough here. But at any rate, the larger diameter works just fine.
Mark, the bolts I sent you are probably a little long - I had to cut mine down a bit. Hopefully your block will work out just as good as this one is.