Mine (2002 1.8T) flooded due to the rain thru the sunroof. Since it flooded my passenger side only, it got to my Tranny computer (TCM?) which caused the all the dummy lights to go on and prevented me from shifting out of Park. I called my trusty NJ VW guy and he instructed me to rip up the carpet, get the TCM out of its tomb (which was loaded with water) and dry out that computer.
I took the computer out of its metal casing (simply bent up the little metal tabs and pulled it apart), took the hair blowdryer to it for a few minutes and replaced it. All is now fine except the airbag light remains on. I attribute this to either the removal of my passenger seat (to dry my carpet and padding) or the leak, which trickled down from the sunroof to the pillar on the passanger side, onto the dash, into the glovebox and dripped onto the passenger floor.
So in the end, it only cost me time as I needed to use the blowdryer, wet/dry vac, and let the car run for about 4 hours with the windows up and the heat blasting!!
So far... all is normal.. except for me?