The two cylinders may no longer be holding proper pressure due to broken piston rings, a scored cylinder wall or something similar. This means the engine is likely seriously damaged and will need to be rebuilt or replaced if it turns out that its actually damaged. In the best scenario it might just be a badly blown headgasket....but I don't know how much compression loss that would actually cause.

__________________
-diesel is not just a fuel, its a way of life-
'15 GLK250 Bluetec 118k - mine - (OC-123,800)
'17 Metris(VITO!) - 37k - wifes (OC-41k)
'09 Sprinter 3500 Winnebago View - 62k (OC - 67k)
'13 ML350 Bluetec - 95k - dad's (OC-98k)
'01 SL500 - 103k(km) - dad's (OC-110,000km)
'16 E400 4matic Sedan - 148k - Brothers (OC-155k)

Latest update is that when the mech took the head off he discovered that the engine was not fixable so today he has picked me up an engine with 75K on it, for 850 euro. So now my question is, assuming he still has to remove the old engine how long should it take him to drop in the new engine? Also does this mean I shouldn't be charged for a new timing belt fitting as this would be part of the new engine install anyway?

with those VW TDI's its wise to change the timing belt if

1) its time for it
2) you don't know when the last time its been done
3) start fresh with a new timing belt.

Car is running reasonably well now. I brought it back in this morning to get them to reconnect the speedo, which they did. I noticed oil on my driveway over the weekend and thought it might have just been some runoff after the new fitting, but I found out this morning that the leak is coming from the Turbo, most likely the seals are gone. I would have thought they would figured this out themselves before giving me back the car but anyway I have to bring it back in on Wednesday to have them replaced, is this a big job, and how much should it cost? Also the ABS is still acting up, if engine goes above 3k revs the ABS light comes on and I feel a sudden jolt ,as if something has turned off. Can someone please give me some ideas regarding these issues before wednesday. Cheers

An awful expensive lesson on the volkswagon. There are worse lessons out there though.