Well, I think its a dandy measurement too, if it worked right. My '92 gasser has the round ball reservoir. The light started to do some random crap warnings during streight and level driving, with a full bottle.
I installed a brand new tank, the problem persisted and got more frequent. I disconected the sensor, the warnings happened in the same fashion and frequency. I jumped it with a paper clip, the warnings happened in the same fashion and frequency.
The wire is back on the tank, the reservoir is about 3/8 of an inch above MAX level, the warnings are frequent, completely random, and terminat all by themselves, with out turning off the ignition.
Since the warnings are turning themselves off without turning off the ignition switch, I'm concluding that the problem is not the tank. Its probably a cold solder joint somewhere on the back of the instrument cluster.
There is also some electrical hijinks going on in the cluster of the '93, so I suspect as VW started sourcing globally, the quality went down somewhat.
So, my point is, if you have a '92 or newer, and your coolant level thing goes berserk, it may not be the coolant level, or the coolant sensor.