VW-AG has several levels of oil certification. Up to 2003, the 505.00 level was the highest and is spec'd for the TDi and GTi. It's is a 5W40 Synthetic with some other qualities. When VW introduced the Pumpe-Deuse Diesel in the Passat and later the Jetta, they advanced the spec to 505.01 because the cams and other internals needed to function at tighter tolerances. 505.01 is also a 5W40 Synthetic but with lower overall wear and breakdown. I don't know much more than that about the specs. I'm not chemical or mechanical engineer, so I couldn't say what the differences mean. But I do know that VW is adamant that using a non-505.01 spec'd oil in the PD is bad-bad-bad. And given that the Kendall 5W40, which is 505.00 spec'd and sold by Village VW for use in engines that can take it... I'm sure Kendall has tried to get it 505.01 spec'd and failed. So I feel certain the oil is crap-ola for my PD.
The new TDi's aren't your old diesels. They are finely machined machines that utilize advances in oil technology much more so than gasoline engines. Diesels, by design, end up with soot from the fuel getting into the oil. The oil has to be able to handle this and still function properly.
In Europe, VW and Audi have advanced to the 506.01 spec oil if the driver can stick to low or sulphur-free fuel. The advantage is that the oil change interval jumps from every 10K to 30K. $70 or even $200 for an oil change isn't all that bad if it happens only every 30K.
You can buy 505.01 spec'd oil from other suppliers but it still costs about $8/liter. That means you have $40 in the oil... At that point, I'd rather just take it to the dealer and spend the extra $30 to have them get their hands dirty.
As far as the costs of repairs and such, when the car was running right I was getting around 40 miles to a gallon of fuel that costs 30 cents cheaper. Every time gas prices go up, my investment makes more and more sense.
And as far as the recalls, they only affected the heated seats. VW has been having a problem with the switch not cutting off properly and seats catching on fire. Not a good thing when you are driving in traffic. Somehow I doubt this recall would affect the fuel mileage!
Thanks for the questions...
I went by the dealer on Saturday. Joy 102 was there saving souls while the VW folks were trying to put them in Bugs. I spoke with my salesman and he copied my receipt and told me he'd jump on the service manager first thing Monday. He said that even if the oil wasn't a problem, I should bring it in because of the mileage change. It'll be interesting to see what develops. I just wish I was watching someone else go through it and not me....