Barons Bellville are taking chances with you. I had my 15000km service done and mentioned to them about the wiper smear they initially told me warranty doesn't cover blades after 14000km, but they had a look and there was a TSB out for the wiper blades to was replaced under warranty, as for the Radio software i'm 1000% sure N1 City has it and they will do it for free and do it while you wait. They probably had not encountered the software upgrade before and that's why they told you that. To be honest i would stop going to Barons Bellville all together as there service are the pits and they never do what they're supposed to, N1 city on the other hand is completely different, they are superb, i have used almost all the Barons dealerships throughout the cape for servicing and repairs on all my VW's and i must say N1 city gives the best service of them all. Big up to them

Dantes inferno,
As for the transmission overheating, this can happen if you are shifting the car into Neutral and isn't advised at all especially on a DSG. A couple guys used to put it in Neutral while waiting at a traffic light and that would cause the transmission to overheat. I've read somewhere and i'll post the article, it's not advisable to use Neutral while the car is in motion and especially coasting down hill and so forth, the assumption is if you put it in Neutral you'll get better mileage but this isn't the case. Just my opinion.