Last night on the highway I noticed that the EngineTemp gauge was not moving from the C position. Then a few miles later the MIL lamp lit up. Drove it home and this morning the light was still on and the Temp gauge did not work again.
Any thoughts on these problems and are they related? Thanks

 

its probably the thermostat. i had the same problem except mine would take around 10-15 miles of driving to reach the middle. did the timing belt and replaceed it all and now its normal.

also some people say a faulty coolant temp sensor would do the same.

also go to autozone and have them scan for the code and post here for a exact or more specific answer. all i have said is just guesses cannot be 100%
if you plan on keeping the car definitely consider investing in a vag-com. or buy the $10 dollar ebay cables and software is free. itll pick up tranny codes and abs as well.

 

Had scanned and code is P2181

 

18613/P2181/008577 - Ross-Tech Wiki

go ahead and do your timing belt if you havent already.

 

on mine it was a combo of the thurmasat and the temp sensor they are not that hard to change but cost a lot of money to have a shop do it