gtiboy:
It's the amber warning light, as for oil I am not sure what the R32 uses as I picked up the car a few weeks ago from a VW dealer.
OK, the amber one is the oil level sensor. If you are sure you are checking the level with the dipstick correctly, in accordance with the owners handbook, and the level is close to the max mark, then the sensor is prolly knackered. However, as one of the previous posters suggested, it might be worth checking the wiring to the sensor - both for any chaffing of the wires, and the actual plug connection. If you can, remove the connector, and spray some silicone grease to protect the terminals. Don't use WD40 or similar, as it will rot the ridged rubber seal inside the connector.
Regarding the oil, it should only really be having the LongLife3 spec oils - which meet VW504.00 standard, though some use the older VW502.00 oils, which, whilst not being longlife oils, are also not as good as the latest LL3 oils. Do I presume correctly that it is not a brand new car? Look in the service book and see what any previous services used - there should be a "tick-box" for the type of oil used - though many dealers get that wrong!
HTH
Sean - Independent Motor Vehicle Tech (ret'd)
'07 Audi B7 RS4 (with ceramic brakes) - WOW,
'06/7 VW Golf Mk5 GTI 2.0T FSI DSG, colour coded,
'03 Audi S4 4.2 V8 40v 6sp man, (gone)