hi,
exactly the same symptoms as my 87 16v. not entirely sure why it doesnt do it all the time but i just replaced the sensor.
takes about 2 mins, costs less than £5 and no more red lights. it is only a level sensor though, so if you are happy that it is full then no problem.
good advice though to do the filter, oil, cooler stat seals etc in one hit, but if your temps are holding ok then you have time to collect the parts you need before taking it apart.
got my sensor from:
http://www.vwspares.co.uk/but im sure europarts and gsf do it...or go to vag if your feeling rich.!