Though it could be the crankcase oil seal so I stripped the pulley off to see but it was dry....
So i put it all back together and ran it til it built up some pressure and there was almost a steady stream running from the engine. This led me to think it could have been the sump gasket... However my local VAG part man told me these motors use a sealent instead of a gasket.
Was getting kinda worried at this point....
Anyway i then noticed oil further up the back of the block and investigated the oil pressure switch...
There was a strem of oil running from it! so it ended up being a chaep job that took me going on for three hours stripping parts i didnt need to!
Just though id highlight it to you guys to check the switch to avoid any dirty jobs in the future trying to locate the problem
!Cheers
Dan