This is actually a problem with my daily driver Toledo V5 (150 bhp), been using the mk2 16v for the last 5 weeks now as the Seat garage cant find the problem. Had been losing power and missing in July, took to dealer (under warranty) who said that no faults came up on the diagnostic and that it was fine. Car gradually got worse and exhaust got so hot in traffic that it started smoking underneath. Took it for another diagnostic and Lamda probe and air flow meter identified as problems. Lamda probe changed but no better, said air flow meter was ok. So for the last 3 weeks they have been liaising with Seat Uk and checking timing etc. My problem is that the dealer does not seem to have the expertise in this particular model and all of this work is being categorised as diagnostic which is not covered by the warranty. Therefore I am likely to be hit with a huge bill at the end and possibly the car still not fixed! Any ideas would be greatly welcomed!
For anyone thats interested it turned out to be the air flow meter. This did not show up on the computor but along with the lambda probe sensor it completely cured the problem.
from my experence the 'Warrenty company' only wants to pay for the fix only with getting into it too much. with those described fults I would of guess the the lamba was reading too lean as the car was miss reading the airflow, miss calulating the mixture - lambda then panicing cos it's more lean than it can adjust for! I would of went for MAF straight off!!