After struggling to find the coolant sensor, and with some tips from others, here is what it took to do this today. This is a 2003 1.8T which has more plumbing than the earlier 1.8's, particularly the one shown in the taligentx write-up.
1. After removing the engine cover, find the heat shield on the left of the cylinder bank and remove it. It is held on by 4, 8mm bolts. You need to get this out of the way so you can reach back and around the engine block from the left.
2. Reach around the back of the block with your left hand. It helps to just lay right on the grill and engine so your elbow is down at the level of the exhaust manifold.
3. Use a good light source to peek through the plumbing. You'll find the sensor by reaching up just a bit from the most comfortable position your arm ends up in. The first photo shows how narrow the opening is to see the sensor, but with a good light, you'll see your hand back there.
4. Using a screwdriver inserted from above, pry the retainer clip out. In the first photo you can see where I inserted an 8" flathead screwdriver just behind the VCT valve and plumbing. You should see your screwdriver head through the opening circled. For some stupid reason, the clip was inserted from the front, engine side by the factory, but I was able to pry it toward the engine then grab it with a small needle nose using my left hand. Many others have recommended having an extra clip handy, which I did. But by prying slowly you can tell when it is about to pop out.
5. With the clip out, you can force the sensor and wiring up with your left hand. Don't even bother trying to remove the wiring connection at this point. Replace the sensor after you thread the wiring connector up through the VCT plumbing as shown in the 2nd pic. Make sure you remove the existing o-ring after the sensor comes out. I was able to roll it out with my thumb reaching up and into the opening.
6. Now you can thread the unit back to the location, then get your left arm back around and under to guide and push the sensor into the opening. The retaining clip is very easy to re-install from the firewall side.
7. Don't forget to put the head shield back on.
1. After removing the engine cover, find the heat shield on the left of the cylinder bank and remove it. It is held on by 4, 8mm bolts. You need to get this out of the way so you can reach back and around the engine block from the left.
2. Reach around the back of the block with your left hand. It helps to just lay right on the grill and engine so your elbow is down at the level of the exhaust manifold.
3. Use a good light source to peek through the plumbing. You'll find the sensor by reaching up just a bit from the most comfortable position your arm ends up in. The first photo shows how narrow the opening is to see the sensor, but with a good light, you'll see your hand back there.
4. Using a screwdriver inserted from above, pry the retainer clip out. In the first photo you can see where I inserted an 8" flathead screwdriver just behind the VCT valve and plumbing. You should see your screwdriver head through the opening circled. For some stupid reason, the clip was inserted from the front, engine side by the factory, but I was able to pry it toward the engine then grab it with a small needle nose using my left hand. Many others have recommended having an extra clip handy, which I did. But by prying slowly you can tell when it is about to pop out.

5. With the clip out, you can force the sensor and wiring up with your left hand. Don't even bother trying to remove the wiring connection at this point. Replace the sensor after you thread the wiring connector up through the VCT plumbing as shown in the 2nd pic. Make sure you remove the existing o-ring after the sensor comes out. I was able to roll it out with my thumb reaching up and into the opening.

6. Now you can thread the unit back to the location, then get your left arm back around and under to guide and push the sensor into the opening. The retaining clip is very easy to re-install from the firewall side.
7. Don't forget to put the head shield back on.