i thought i'd relate a repair i just did...  the hole in the case of 
this '87 i have stripped out this weekend, again a victim of dealer 
servicing.  after calling many people and talking to the dealer here 
(not the one that stripped it) i had quite a plethora of 
possibilities for repair ranging from one of those cheapo rubber 
plugs you insert with a 'needle' to tapping the hole with a spark 
plug insert and brazing up a 14mm spark plug for an oil plug.  

the most expensive repair was to install a heli-coil (dealer did not 
have the 'kit' to do this) so i choose that route :)  let me say that 
after completeing this, it is absolutely the best way to go.  i 
bought a new drain plug to go with the new stainless steel threads of 
the heli-coil and that ol' plug just threads in so fine until it hits 
the gasket.  the only resistance is the film of oil... we're talking 
smoooth, folks!

costs:
heli-coil kit for 14 mm X 1.5 mm  $77.00 comes with 6 inserts 
9/16 drill bit $16
new drain plug $5

a couple comments-- the heli-coil comes about 1 inch long, the casing 
is about 3/8" thick so they need to be cut down.  this is easily 
accomplished by snipping one coil at a time with a diagonal side 
cutter.  when drilling out the casing and tapping it i was paranoid 
about filings.  i stuck an air hose in the dip-stick tube and had air 
flowing all the while i was drilling and tapping.  this really kept 
the hole clean and the chips shot out of the hole as they were 
released.  break off the heli-coil 'tang' not by punching it like the 
instructions but just wiggle it back and forth with a needle-nose-- 
it snaps right off and stays in the needle-nose.

now here's the best part... the VW service manager said he'd buy the 
heli-coil kit from me when i was done as they run into stripped 
threads quite a bit!!!  sometimes it pays to get out of bed.

-dan houg