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I posted this report on the "other" forum and post it here thinking it may benefit others.

2003 1.8T 5.5 Passat: Was having long term problem with engine loosing coolant and over heating. Trying to find a leak, with engine was running, saw coolant spraying out at the well-concealed "coolant flange" on the rear of the engine. After removing it, it did not show any defect but rubber "O' ring on the driver's side flange connection had blown-out and was distorted. Installed new OEM flange and had difficulty sealing the "O" ring connection. So reinstalled "O" ring also using Permatex. Fine ! Two weeks later engine overheated again. Coolant flange and "O"ring not leaking. However, the coolant tank cap blew off this time. Ah Ha ! The tank was a replacement and old cap never really screwed-on easily. Cap on coolant tank was plugged and tank threads not proper. My note: When replacing tank buy one that comes with a new cap, and check tank treads and cap carefully.
 
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