Ring Consumer Direct
http://www.consumerdirect.gov.uk/
they should be able to advise you further as my missus (works for Trading Standard) reckons you can push for a lot more 
Agreed. The Sale of Goods Act states something like:

must last a "reasonable" period of time
(Rhyso, perhaps you can get your SWMBO to confirm the exact phrase of the SoGA?

)
Now as far as I am concerned, whilst 70k miles might seem high, engines should really last double that. But the crucial bit is the two year old issue - that clearly is WAY SHORT of a "reasonable" period of time!

However, a massive caveat - we still don't know the FULL history of the car!

Had it been remaped or modified in any way? Was the oil level never checked between services? Was the car thrashed when cold? Was the car thrashed just before being turned off?
There are so many important 'unaswered' questions which really need to be addressed - before we all start slagging off the stealer, or slagging off VW UK, or indeed slagging off the OP!
