WARNING - my brother runs a vw bora of the same vintage as my car (2002) and it has been far more troublesome than my Alfa by far, even though the 156 has 50k on it while the bora has done about 24k...
with a third party warranty he got more than his moneys worth with the amount of work the dealer decided the car required - vw service staff are hit and miss, some are sensible and know whats wrong, but most dealer garages simply follow the never ending list of fault codes the car may churn out and replace every part it tells them to... google for good vw forums that are as good as AlfaOwner, you will need one to find a good dealer - or find a good local indy.
actually, of all the vw owners I know, only a few are happy with their cars, most have as many problems as you hear about on this forum.
**good luck though! hope its a good one!