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Here you go:

http://www.shotimes.com/SHO3brakefluid.html

Everything you wanna know!

VW brakes (calipers) are built by ATE or Girling for the most part. Use ATE, Girling or Castrol fluids. Otherwise your choice other than DOT-5 and Silicon based, they'll ruin the seals and such.

Luck,

TC
In an article in Vintage Truck magazine, author, Bob Adler tells that the difference is in how the fluid reacts to the rubber cups and seals. Dot 3 and 4 has a reaction with the rubber that causes a small amount of swelling when first installed. There is actually an allowance in tolerance in the kits for this reaction. Silicone (dot 5) does not cause this swelling and will result in small amount of seepage in cylinders in many cases. This happened in my '32 Ford PU. If you soak the rubber components in Dot 3 or 4 before installing and using dot 5, you prevent this problem. Be sure to wipe the fluid from the parts before installing.
Otherwise you simply avoid the caustic reaction to paint with dot 5. One other issue--dot 5 will not mix with water while dot 3 or 4 will absorb small amounts. The result--you could isolate water in a low spot in the line and if allowed to freeze, would or could cause failure--but most owners don't drive their "baby" in the snow.
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