Just posting an update, i managed to get a blank key with new transponder from Ebay, I took it to the nearest auto locksmith to me, (margate) and he cut the blade but was unable to programme the chip, he did advise me prior to starting that this might be the case, as he had never done as new a car as mine (2007).
so i have a key to get into my car but need to goto VW to see if they will code it.