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The switch; is a known failure issue; have you scanned the car for trouble codes? A VW scanner or VCDS will usually pick up error codes, when the switch is bad. It used to be easy; to damage, the old style switches; did your car have the later version of the brake switch... through the latest recall? If in doubt; I would replace the switch.

http://newbeetle.org/forums/technical-how/11221-how-epc-light-brake-light-switch-install.html

Testing and install info here:

http://workshop-manuals.com/volkswa...g_brake_light_switch_installation_precaution/
 

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Discussion Starter · #3 ·
I don't like leaving unresolved threads laying about so however silly this is going to sound I fixed my problem after realizing I was fiddling with the clutch pedal switch this entire time ! Egg on face here. I got a bright light to see what I was dealing with tonight and - damn that looks dusty for me having had it out of the car twice ...... And Ya know, I also wondered why it showed continuity when pushed in (brake switch would be the opposite). Sometimes your mind is a terrible place to waste !! I then realized why the similar looking switches are cast slightly different (so you can't swap them) All is good now , after seeing the test light worked and touching a jumper to the harness the lights lit right up. I changed out the switch and we are back in business !
 
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