UPDATE: Tom Bush VW had the car for 3 days. They ran it and said they saw white and black smoke on acceleration. They took the turbo off and found no oil in it. They did a compression test and found 98 lbs, #1 cyl, 70 #2, 70 #3 and 65 #4. A leak down test showed excessive air leaking past the rings in #2, 3 & 4 cylinders along with some past the valves. Conclusion by Howard, the service manager, was the increased compression caused by the REVO stage 2 ECU upgrade caused the failures and therefore VW would decline the warranty claim on this issue. Talked to the VW Customer Care lady and she reiterated what the service manager said.
Okay, so now what?!!
:thumbdown: For now I'll just keep putting oil in it, and somewhere down the road trade it in. I'm thinking about taking it back to the shop and seeing if they can actually DETUNE the REVO settings on the ECU upgrade to keep things from getting any worse. Definitely going to think 2 or 3 times before making upgrades to any car in the future.