Steven-
I'm glad you found something that will work for you.
You CAN get the sump bolt in question off... someone had to put it on. The case splits right down the middle of the sump, and the sump goes on after the case is put together. SOMEBODY put it there with the engine together. I would imagine the bolt in question is the one that has a nut on the back-side and holds the oil pick-up in place. I've loosened and tightened this particular bolt a couple of times now with a ground down wrench, and a lot of patience, something that seems to be in short supply with your mechanic.
The idea that you can't heli-coil a piece unless it's on a bench just proves that the shop you are going to just didn't want to do it. That's just wrong.
I recommend that you buy yourself a book and a set of tools, and learn to do this kind of stuff yourself. There isn't anybody in Peoria or Des Moines that remembers these cars. Out here- we're on our own.
I know a guy who needed an alternator for his air-cooled car. He took it to the VW dealer, and after begging, convinced them to put it on. It took them all day- every "tech" in the shop worked on it. They charged him several HUNDRED dollars in labor. I did this in an evening in my garage this spring, and replaced the dog-house, added a 356 pulley and a welded/ balanced fan while I was in there.
I'm not some hot-rod mechanic- I pay to have somebody figure out my "check engine" light in the various other cars. My point is- these cars are simple, and pretty easy to work on- but it's a skill that doesn't have any financial value for a shop in the midwest, so nobody has these skills here any more. You'll have to aquire them, or spend a lot of time and money being dissapointed. Good luck.