Thats spot on. I have had two 6R polos (10 plate and 62) they both work as you describe. The DRL on this car use the same bulbs as dipped headlights, unless you have the xenons.

I noticed with '0' the dipped bulbs are on but a reduced output, if you park against a wall at night or genrally drive aroud you will notice they are quite abit dimmer. Also on this setting your rear lights and number plate lights are on as well again at dimmer setting than the dipped postion.

Personally never bothered with the sidelight setting on these cars, cant really see much point in reducing the visibility of the car.

If the DRLs annoy, you can disbale them as describe in the manual, although i dont know if you can do that anymore on the later models.

It's VWs version of a cheap and dirty solution implementation of DRLs on the currently Polo.

When I drive this car I turn the light switch to side lights, saves headlight bulbs from blowing more often and saves a little energy and hence less fuel and less pollution. If I forget to turn them off when I park the buzzer sounds to reminder me to turn them off, and when I then return to the car I have to turn the light switch again, in daylight, nuts !

In addition if the headlamps are used as DRLS it causes the headlamp bulbs to blow sooner than they otherwise would. Also changing a headlamp bulb on a VW Polo means having to take out the front light cluster before being able to gain access to disconnect the headlight bulb connector, not a job you want to be faced with in the dark. Nuts and nuts again.