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As this is in the mkv section I presume you have a mkv, but mkivs services are...

time and distance : set to 15000km fixed

longlife for petrol : set to 30000km max

longlife for diesel : set to 50000km max

And wont change.

The sensor you mention is located in the bottom of the sump and measures the quantity of carbon in the oil periodically after 9000 miles and then adjusts the reading accordingly, it also acts as a level sensor and if it gets low will put on a 'yellow' oil can on the dash to warn you.

As for mkv settings I know they are similar but different service regimes, but I also knew that before they were on sale, so maybe you were misinformed not by vw but by the saleman that hadnt checked the new car info correctly.

I will try to post up the mk5 regimes for you next week if I can find them.
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