I am actually using an '88 MKIV block and would like to avoid using a t-fitting if at all possible. Charlie, I will have to check and see on the location you have identified. I know (well, I'm pretty sure) that there is on just around the corner from the location you have identified (just below the #1 exhaust) and I think that is where the stock sending unit gets inserted.

Is there another one somewhere such that it wouldnt stand out so much (i.e. not on the front of the engine) ?

I appreciate your input.