I own a 1.9SE TDi and can only fault it for 2 things, those being rapid front tyre wear and smoke from the auxiliary heater. The car was returned to the dealer within 5 days of purchase after it started smoking and was told to just let it develop. I have taken it back several times since (to another dealer) who have carried out all the modifications available, but I still have the problem. If the problem still exists when the warranty expires I wonder what VW's position will be as the problem has never been cured from when the car was new.
As for the tyres wearing badly on the inside and now down to the legal limit at 13000 miles I am surprised at this.
I have the same problems with mine, tyres and aux heater. The rear tyres are now wearing oddly (26000 miles) and make a terrible noise on all road surfaces. The dealer said it was speed cushions that were to blame for the rapid inside edge wear on the front (!?!),however since I don't drive over them on a regular basis I am not convinced.
They haven't been able to sort out the aux heater either so each winter I disappear in a cloud of smoke as I wait at the road junction!Even with these faults,it's still a nice car to drive.
With regards to the auxillary heater smoking this is the exhaust from the pre heater which you can see under the drivers front wheel arch,there is a recall to extend this exhaust down the cars main exhaust tunnel,just call your main dealer and it will be done f.o.c.