The problem I have with this is the owners manual states the top mark is
a "max" reading not an overflow and the lower notch is a "min" mark not
a normal level. The difference between max and min is one quart. When I
change the oil and add the recommended 4.8 quarts the level is at the
top mark.That means the lower mark equals 79% of capacity. That oil has
to do the same amount of cooling and lubricating which means reduced
life. It also states that "oil consumption is normal" and "immediately
add oil if below min" so I conclude that running at a min level is
rather risky business.VW has been making the flat four for a long time.
I would think they know the minimum safe level. I believe VW has to fill
out a US environmental impact statement concerning oil usage by the
number of vehicles sold times the number of times a year that vehicles
will change their oil. This is why they  only recommend twice a year. To
normal driving this would equate  to 6000 miles! How often do you change
yours? What I am trying to say is that if they thought it was safe to
run at 3.8 quarts they would.
Keep cool
Ken Lewis

On Tue, 27 May 97 03:55:43 UT "Dennis Haynes" <dhaynes57@msn.com> writes:
>The cam is lubricated properly from splash.  There are no engines that 
>
>submerge a camshaft intentionally.  Too much windage causes heat build
up and 
>foaming.  Race engines run dry sump systems and actually keep the pan
near 
>empty.  Almost all engines have the dipsticks calibrated so that the
full mark 
>is actually an overfull condition.  This is to accommodate normal losses
and 
>inattentive owners.  Installing an oil temp and pressure gauge will show
the 
>harmful effects of overfilling these engines.  Not only do oil temps
rise, but 
>watch the falling pressure as the oil gets aerated.  You still need to
find 
>the leak though.  Check the breather mounting to the engine block and
the hose 
>to the air inlet. 
>
>Dennis
>