Well It is all nice to know that you spent a ton of monies, but it doesn't relate to his question.
His question was "What do I do with the oil cooler hoses that I have on the car?"
Which the answer is, to remove the 3way hose and replace it with a normal By-pass hose.
He would have to plug up the addition hose connection on his water outlet flange, hence the plugs, or solder it shut using the Duralloy stuff I mentioned.
He opted to use 2 plugs and a couple of clamps.
Now your question should of been why change from a Water Stabilized Oil cooler that is factory to an external? The reason is that Externals can only leak oil.... Where the Water Stabilized ones can leak coolant from a hose, oil from a seal, or intermix a/f and oil...
I did the how to thread because on the 90's Cabriolets VW did away with the Factory Water/Oil Stabilizers they were still on the Passants and Jettas in the yards from what I have seen just removed from the Cabby's... I noticed that at Highway speeds running 80mph with the a/c on, my cars oil temp sky-rocketed to 135.... I wanted to cool it down.. Hence my how-to on installing a true external oil cooler.
While some will say that the radiator is still cooler than engine oil so it is effectively cooling the oil, there is too much additional crap that can go wrong. Which is why I choose the route that I took. Using a Volvo Temp controlled Wahler unit means the car will get up to temp, but never exceed about 110 degrees on the oil, this will increase the life of the oil, make the car run a tad cooler, which is a good thing.
How I did it and what parts you will need:
Which is way less than you spent...The most expensive part was the Oil Cooler hoses.
Oil cooler off Volvo 12.00
Tranny exchanger 6.00
Parts (hoses, clamps/fittings) 45.00
2 Cans of Brake Kleen 6 bucks.