Is it true the EML will fail?
Will kill a lot of MK4's and Beetles off. 
They mean if any warning light isn't working.
I think alot of MK4 owners know pretty well that the EML works.
So if the EML is lit, is it a fail?
No, that's not what it means and not necessarily either.
But if it comes on because of the lambda sensor being out of range and the emissions are high, then it will fail for the emissions, not because the light is on.