I used Gates 4864CF Wet Exhaust hose in 1.5" i.d. (http://www.gates.com/brochure.cfm?brochure=5087&location_id=5248). I purchased two 10-foot lengths and four 1.5" stainless hose menders from a local hose supply house for under $120.00 delivered.
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Three of the couplers connect the new hoses to the existing�front radiator hoses and the rear hose to the thermostat housing. The last end I connected directly to the coolant distributor on the right side of the motor instead of coupling to the existing short stock VW line so I have a spare hose mender. No other modifications of the stock hoses were required.
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You need to cut the hose with a hacksaw then use a wire cutter to trim the twin stainless wires imbedded in the rubber. I ended up with a 4" piece and a 24" piece left over.
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It was very easy to install; I did double up on all of the hose clamps at each connection point. I had a roll of Velcro tape that I used instead of cable ties to fasten the hoses to the van and each other. 
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The heater hoses were also replaced at the same time; 25-feet of 5/8" hose was just enough.
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Good luck,

TJ Hannink
Goldibox - 1987 Vanagon Camper, Wolfsburg Edition
1981 Bluebird Wanderlodge, FC-33SB
Des Allemands, Louisiana
http://groups.yahoo.com/group/wolfsburg_campers
http://groups.yahoo.com/group/FC_wanderlodge
 

________________________________
 From: Kevin Gilbert <kggilbert@MYACTV.NET>
To: vanagon@GERRY.VANAGON.COM 
Sent: Thursday, October 18, 2012 7:44 AM
Subject: Coolant Hose vs. Coolant Pipe
  
Vanagoneers,

Has anyone out there replaced their steel coolant pipes with suitable
hose?
Is it reliable and durable? Cheaper? Easier to install?

I have a standing order for steel, but my vendor friends won't have
pipes in stock for several months, and I'm exploring alternatives.

Thanks.

Kevin