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Goose, this sounds like the same problem I had recently on my v5 150bhp - cylinder 4 wasn't firing, so the engine was running lumpy and producing a bad sulphury smell. Problem was intermittent, sometimes it would run ok. Nothing showed up on VAG-COM diagnostics. Checked the leads, plugs and changed the coil pack with no improvement. Then I replaced the ignition control module and it solved the problem. Its an easy part to change, just bolts on to the bulkhead behind the engine. Original part from VW is about £200 but I picked up a generic online for around half that. Let me know if you want more info.
Can I ask how many miles your cars got to before this part failed? - I might need to add this to the list of potential failures.
Thanks