See how you go with a letter - otherwise you may have no choice but to pay the $1,300 labour cost. Just make sure that labour cost is locked in so that you don't get the whole "well it ended up taking 5hrs longer than anticipated due to blah blah blah so labour will now cost you $2000"
So I have my car back and it is running fine... James Frizelle Motors in Lismore ended up being helpful with labour costs and did a free major service (new plugs oil etc) and a compression check which showed compression on all cylinders in normal range... meaning that valves and cylinders are still maintaining cylinder pressure... (something that they may not do if damaged by timing chain stretch causing valves to hit pistons). Still going to write a letter to Skoda Australia to see if they can pay me back some of the hire car and labour costs. Not optimistic though. Its good to have the yeti back running smmmoooothly.
Morale of the story is if your VW TSI engine starts running rough on startup. Get timing chain checked immediatley before it does any major damage! There seems to be no dash warning light for this potentially fatal issue with Timing Chain equipped VAG TSI Engines..
Good to hear its fixed - still cant believe VW cant sort out their timing chain issues after all these years.