On the subject of vargouille pronunciation, I would like to point out that in french, gargoyle is spelled "gargouille" and pronunciated GAR-GOO-YE, while vargouille is spelled, well, "vargouille", so I just kind of assumed it had the same pronunciation. So having vargouilled become VAR-GWEEL in english does seem quite weird.
I would assume it would either be pronunciated as in french (as it seems like a french word [words in -ouille being quite common in fench]), or as gargoyle.