I use AMSOIL full synthetic 5w-30 high performance motor oil in my 98 2.0 beetle. It runs real nice and should last at least 7500 miles or more if you change the filter every once in a while. It costs about 6.50 a quart i think, but only the best for my bug .
When I had the VW Dealer Change the Oil in My 2000 New Beetle At 57,590,I used full synthetic, as I Do not know what the other owner had used. My VW Dealer was running a special then, so I Am going to stay with full synthetic, on all my oil changes.
man I hope I'm not the only one using this but I use Valvoline MaxLife Synthetic 5w-30. I have just over 100K on my car and that seems to last a little longer and run better in between oil changes every 5-6K miles.
On another note.... Has anyone else had to replace the tube that holds the oil dipstick? Mine cracked and crumbled and so the dipstick sank, so when I would check my oil it would read above the line. It was about $15 from the dealer but still.... cheap brittle plastic. Why cant they make car parts like they use to? a little longer lasting!