It indicates a fault in the ABS system. Could be as bad as broken control electronics ($$$) but it's probably a bad wheel speed sensor. You should get the fault codes checked by a workshop or somebody with a VAG-COM diagnostics kit.

The ABS sensor is not too hard to replace yourself, but they tend to be really, really stuck. Requires destructive violence on the old sensor to get it out and some real good cleaning and lubing of the hole to get the new one in.

 

The ABS modules are sensitive to voltage issues.
Had the same lights when I bought my '01.
There was a thread a while back about removing and reinstalling the three green fuses on top of the battery.
I laughed it off and said no freaking way.
So, I took the 30 seconds, unplugged the fuses, inserted them and removed them a few times and the problem went away.
I'm serious.
It was a voltage supply issue to the ABS module.

A VAG cable, as Basher pointed out, is the only way you'll know for sure what codes set if the fuse fix doesn't work.

 

Wow!

Thanks Dan-o

I pulled the tree fuses and switched them around.
Problem solved!!!

Thank you SO MUCH!!

 

You... yeah you... you very lucky.

I was thinking $2k worth of work!

 

Happy to help!
And it's Dan- Capital O

Messed up isn't it that a little corrosion on a fuse would set a code?

Dan-O

 

Thank you so much! I replaced the wheel speed sensors on my daughter's 04 GLS trying to get the traction control light to go out. Wiring looked great and i thought I'd search the issue one more time. Found this thread, and pulled the fuses swapped them around and the light is gone. You absolutely rule my friend. Very much appreciated!!!

 

Ill be damned, those three green fuses did have a little corrosion. Pulled them out and replaced them a few times. then switched them around. The traction control/abs lights are not a problem anymore. AMAZING!