Longlife oil is any oil approved by Volksawgen to standard 504.00/507.00 and is designed for variable service intervals. Non-longlife oil is VW 502.00/505.00 and is meant for fixed service intervals.
504/507 oil can be used for both Longlife or time & distance service regimes, whereas 502/505 oil should only be used for the latter.
I'd point out here that 502.00 doesn't really tie down the oil viscosity adequately for the TFSI/TSI engines - it won't allow the engine to meet Euro IV emissions and there is anecdotal evidence that re-circulation of oil vapour from the crankcase breather results in significant deposit build up in the intake ports and on the back of the valves. Additionally 505.00 (the diesel "equivalent") isn't low in sulphur/sulpahted ash so will probably hurt the DPF on GTD's.
I agree. 504/507 oils arguably keep the intake valves cleaner for longer, reduces EGR clogging, and prolongs the life of the DPF. If one has a direct-injection petrol (i.e. FSI, TSI, TFSI, etc.) or diesel (TDI) engine, then I believe you are really better off with this oil.
However, for warranty purposes, VW deem it acceptable to use 502/505 oils (except for vehicles fitted with a DPF) as long as you are on the Time & Distance service regime - which I find incredulous, but there you go.
