Have you tried to coat the inside of the weld with RTV to help it seal?
A weld free option is to use the V6 thermostat housing. Remove the entire Caddy aluminum thermostat base, make a steel or aluminum plate to cap the hole entirely, the V6 thermostat housing has the same bolt pattern as 2 of the 3 holes in the caddy base. Use the plate to cap the hole and then bolt the V6 thermostat on top.
You will need to plug the coolant lines that used to go to the the V6 throttle body, or just cut them off and run the heater hose past them.
For the coolant sensor, you can drill the intake as shown below and mount the 3 wire temp sender in the intake. It will fit in the recessed pocket of the oil filter assy - but it needs to be in the right place:
Another option would be to make a steel plate and weld the upper portion of the thermostat housing to it. This allows you to focus the heat more on the thicker steel and greatly reduces your chances of burning through.
[This message has been edited by fieroguru (edited 11-12-2009).]