I am having a similar problem. I have a 60 plate polo (1.2 60S). The head gasket has gone (and possibly the cylinder head). it is 3 1/2 years old and has only done 30,000 miles. VW won't touch it as I didn't buy it from them and so have no 'brand loyalty'. Even though this is the 3rd VW I have had. They charged me £95 to diagnose it even though I had already had it diagnosed. They have quoted £2500 to fix it (which includes the cylinder head in case it is warped, and that costs £1200 just for the part). I have written to the CEO of VW UK and had no response at all, so I tried the CEO in Germany who did respond and referred it back to VW UK who again said nothing doing. I bought a VW as they are meant to be safe, reliable and have long lives. I am utterly disgusted by their lack of customer care. I will never buy one of their cars ever again. If you can, I would appreciate a copy of this report you have so I can contact Germany again.