from another forum -
first start the radio, the SAFE word should appear on the screen.3 second later the number 1000 should also appear.
second, use the station button (1 to 4) to enter the code of your radio. For the "0" push the button until it comes to zero 0 and it is supposed to appear after the number 9.
third, push the right side of the seek button more than 2 seconds, you should ear a beep. If it is the right number, you should see LSM written on the screen. VOILA!!
It was suggested by my local VW dealer to try the old indian trick of turning the radio on, put the key in the ignition, turn the radio off and leave the key in the ignition for an hour