It's a transponder type factory fitted anti-theft immobiliser. There is a electronic chip in the key which is read by a receiver inside the steering column housing. If/when the signal is received from the key chip, the electronic engine management system is switched on and the engine can be started. If no, or the incorrect signal is received then the engine will not start. This means that if anyone unauthorised were to get a key cut with the intention of stealing your car, and even though they might be able to open the door and get in, they would not be able to start the engine and drive your car away.
Only on VWs in this situation the engine will start for a second and then cut out, exactly as you describe. If you were to check for ignition coil and fuel injector switching you'll find that you lose both at the same time.
I have attended a few of these and found that if you push the car for a few yards to a different location they often start. This might be due to some sort of outside interference that affects the immobiliser. It would seem that a dealer is your only option of a permanent cure though.....
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Or a reliable independent, plenty of VAG expertise outside the dealer network.
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Spot on rail road
My dad had a problem with his A4, strated and cut out with orange light flashing. He managed to do his by wiggling key and fiddling with steering whell position (assuming yours has got that)
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If you've got another key try it. My golf had a problem with the ignition switch, similair symptons.
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