I know it's probably too late, but I missed this thread earlier.
To me, German potato salad means a sweet-sour dressing with bacon. It's usually served warm, but I've had it cold as well. I think the flavors in the dressing are enhanced when served warm.
This is what I use:
Hot German Potato Salad
3 lb potatoes (~9 med)
6 slices bacon
3/4 c chopped onion
2 Tbl flour
2 Tbl sugar
2 tsp salt
1/2 tsp celery seed
dash pepper
3/4 c water
1/3 c vinegar
Heat one inch salted water (1/2 tsp salt to 1 cup water) to boiling, add potatoes, cover & cook 30 - 35 min. Drain & set aside.
Fry bacon until crisp, remove & place on paper towel. Into drippings, add onion & cook until golden. Stir in flour, sugar, salt, celery seed & peepper. Cook over low heat, stirring until bubbly. Remove from heat & stir in water & vinegar. Heat to boiling, stirring constantly. Boil 1 minute - continue stirring.
Crumble bacon, slice potatoes (thin) & combine with hot mixture. Be careful not to turn the potatoes into mush. Heat through & serve. Serves 6