OK, took it into Five Dock. They said it's a known problem on the tech bulletin and no fix for it. Apparently there's a butterfly flap for the induction tube going into the supercharger that makes the squeaky noise.
Supposedly VW Australia have instructed the workshops they will not pay the workshop to rectify this as a warranty fix.... so sounds like I have to write to VW Australia about this - and I will.
My angle is that if the cause is the butterfly flap, I want it replaced.
Straight afterwards I walked to the front of the building to the sales area & asked to test drive a 118TSI DSG demo car with more than 2,000km on the odo. I was taken for a drive with one more than 3,000. Sure enough, the squeak is also there.
The squeak required more provocation on this car than in mine to produce the squeak.
OX518... looks like you will probably have this same issue in some form & anyone else out there looking for a 118TSI.
As to the question on whether this appears in the manual - make take on this is it is likely to be there. However, having driven manuals for years (this DSG is first time I've owned an auto shifter), I know that manual drivers probably allow for more revs before changing to a higher gear thereby reducing the chance of a sudden load requirement on the supercharger. The takeup of the clutch engagement in manuals will be a lot smoother & more gradual than in the DSG.
So outwardly I'm thinking manual drivers will not see this issue as much. However, if they floor it while already in gear at below 3,300rpm, they probably will be able to reproduce the squeak.
DSG owners will see this because the gear change whilst smooth, is more 'sudden'. Also the DSG enjoys putting more load on the supercharger at lower revs (compared to my manual style of shifting which allows more revs before a gear change).
My tip for those with new 118TSI's is to run the car in very gently. Unfortunately I went with the philosophy of allowing more revs & trying to teach the DSG gearbox to change gears aggressively... don't force the car.
The other thing is if I shift the gears manually in the DSG, in ordinary driving I don't get the squeak. I only get it in sudden acceleration when driving in a sporty mode or if I leave the DSG in "Drive" when it rushes to 7th gear (it "struggles" in 6th & 7th gear).
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