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I had the same problem when I bought my 2001.5 1.8T with 39k miles. The oil dripped down very slowly, which led to overfilling. Try checking the oil right after you stop the car (just run it for 30 seconds cold), and then check it again in 15 minutes - I think you'll see it go up noticeably.

The problem disappeared for me after switching to a full synthetic and being religious about regular oil changes (3000-4000 miles).

Your call if you want to just make the switch to full synthetic and let it work itself out, or if you want to me more agressive. I've seen many debates on the value (or danger) of sludge treatments, so I won't even jump into the middle of that one...

In the mean time, be careful about the oil fill level or you'll take life out of your catalyic converter.
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