The short answer is yes it can. As yet I have only personally done TDis but I believe some 1.8Ts have been done. I thought I would post this info here for everyone to see as there is a pretty big issue in the way on the newer cars (seems to be late 06 onwards). The cruise control loom (which has to be custom made) plugs into the central electrics ecu (aka Boardnetz) at plug XS3. the Boardnetz ECU has three different versions. All of these can be programmed the same as far as I know but one of them wont support cruise control. Three part numbers are available. 6Q0, 6Q1 and 6Q2. the first two are fine, the last gives an issue. Good news is its really easy to tell which one you have. Pop down the cubby tray on the right hand side and have a look in towards the diagnostic socket. Above the socket is a square black control unit with two lines of plus on it. If the plugs are at either end then it is a 6Q0 or 6Q1. If the right hand line is int he middle its a 6Q2. You can swap the control unit for the other type, but they are £300 to buy from VAG. 6Q0, 6Q1 I'll try and get a pic of the 6Q2 unit.