My local dealer has the first service listed as £155 inc vat. 
I thought all dealers had the price list for services etc listed somewhere in their dealership? Did you see one cartmell? If they do and it's less than what they have verbally quoted you it seems that they maybe trying to charge man hours for the software upgrade 
I asked the girl at reception how much is was likely to be. 'Cause its a GTI probably £200' she said. Suppose I will only find out today when I pick it up. I was thinking it couldnt be any more than £150.
The software upgrade is a waranty issue, and I didnt know anything about it until I booked it in for a service. Ive had the car 14months and its done 10,000miles.
Also, does anyone else ever get decent replacement car. I never have had one yet. I got a 1.2 polo and Ive been trying to drive it like my GTI. Scarey. Should really complain as when I had a leon Cupra I was given an old ford orion with straw in the back seat. At least the VW dealer has respectable cars.