Are you thinking of the Old World Village in Huntington Beach? It's at the 405 @ Beach Blvd. Haven't been to the grocer/deli there for years, but my recollection is that it was small, certainly not a grocery store, but well stocked. Can't vouch for the restaurant; have never tried it.
Not in Anaheim but not too far away, the German market I'm aware of is Alpine Village in Carson, near the intersection of the San Diego (405) and Harbor (110) Freeways. Wursts made on the premises, pretty extensive selection of German/Austrian goods. The restaurant's just OK I think, but it's been years since I've eaten there.
Is this the one you're thinking of?
re: Bennett Traub
How could I not answer this one, even from here in Germany!
In Anaheim there is the Loreley German Restaurant at the Phonenix Club:
1340 S. Sanderson Ave.
However, for the highest quality wurst you must go to: Continental Gourmet Sausage Co.
6406 San Fernando Road
Of course, you can always come here for a visit!
re: Bennett Traub
The German restaurant at Alpine Village has been frustrating - I have never had an entirely good or entirely bad meal there. The last time I went there the rabbit and goulash were quite good, the schnitzel passable, the whitefish in mustard sauce darn near inedible. Caveat: I haven't been there for over a year, so this may have changed, but that has been the pattern for as long as I can remember.
re: Richard Foss
The food at the Alpine Village restaurant has always been mediocre. But the loose-textured weisswurst at the market (not to mention the schmaltz--fresh lard rendered with onions) is pretty great. And I always enjoy poking my head into the bingo parlor. Only in L.A. will you see Samoans operating a bingo game for a largely Salvadoran crowd in a faux-German chateau.