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Right, I went out and bought another 2litres and put about another 500ml in and I finally got a reading! Just into the "normal" zone. I put in another 300ml or so to get it about 3 quarters to the top. Was slightly tentative to add anymore than that in case there was some oil still to drop into...

So you recommend to just keep adding oil until it appears? That would be the logical action to take but I'm concerned about overfilling it as it's been showing the same amount of oil for 0.5litres as 2litres...? And like I said, no visible oil leaks as far as I can see.

About a month ago I purchased a 2000 1.6 Golf auto from a local dealer. Driving home last night, a serious oil warning light came on about half a mile from my home (Oil symbol appeared on dashboard, then "STOP" in big letters, then disappeared). I checked the dipstick as soon as I got home...