Ahhhh......wiring tail lights - a two-to-three Guinness job!!
Hopefully, I'll not be confusing things even more here.....and I'm assuming that you have the same (cheap Taiwanese) light units that we all have (at least they LOOK the same in your pictures).
First, the "two switch brake master cylinder" is for accuating the "Brake Failure Warning Light" on the VW dashboard. When one brake hydraulic circuit fails, it pushes a plunger within the master cylinder which would cause one of those two switches to close, thus lighting a warning light on the dash.
If you don't have that warning light, then you may simply use one of the switches and leave the other dead (try them both to see which accuates first when the brake pedal is depressed, and then use that one - they're all different).
Now, for the tail lights......First, orientation: They are mounted with the bulbous end toward the fender, AND the flat lens surface facing UP.
There should be three leads, but only two bulbs - one bulb is a single, bright filament (for Stop - toward the pointy end of the lens), the other a dual filament (one bright for directionals, the other dim for running light). You'll have to play with them and 12V a bit to figure out which - use a long wire from some 12V source. For the Earth connection, simply connect a wire to one of the light assembly mounting studs, using a ring-tab crimp connector beneath the stud nut, and goop up the wire crimp area with clear silicon caulk (as you should do for the other crimps as well). You may gang the tail lights and center license plate light together with a common Earth wire, then connect the other end of that wire to the frame with another ring-tab crimp connection (and more goop, or you can paint it).
Style 1: Now, it gets easier; the brakes go to the inside light near the pointy end, the running lights to the dim side of the bulbous end, and the directionals to the bright side of the bulbous end - that's it. This way, you can use an existing late '60's - mid - 70's VW flasher, wire it up just like the VW manual tells you and it works correctly because those years had a separate brake and directional light.
HOWEVER! (and you thought it was all done and easy, right?) Style 2: SOME lights (and cars) I've seen have the circuits flipped (pretty easy to do, actually), with brake/directional on the bulbous, outside end (using the bright bulb filament), and running lights on BOTH the dim filaments of both bulbs. This is the 50's style VW and AMERICAN (and, often, Dune Buggy way) of wiring "single bulb tail-lights) and can use a standard, three-terminal American flasher unit (those little cans up under the dash). THAT method will probably use the CIP-1 wiring method and flasher placement in the circuit.
You'll have to decide which is the "look" you want your car to have when the lights are on. Personally, I chose the "Euro" look of style 1, with a segregated brake light to really get their attention (along with a third brake light mounted at eye level from behind) and the small-ish running light of only half the total lens lit. The combined running/directional lights in the bulbous end look at least as good as a single-bulb tail-light, and the directional can be seen easily.
Good luck, and email me if you have more wiring troubles......
Dr. Sparks