Skoda dealers had my car for about 4 weeks now fixing the gearbox, but they were also looking at this leak which appears to be coming from the head casting:

They say they've cleaned the engine off and ran it up to temperature, and its not leaking now and they think its been leaking a "negligible" amount over the last 2-3 years.

My point is, it shouldn't of leaked at all! My manufacturers warranty expires on the 12th of December, although I have an approved warranty until April the 12th 2011.

Should I take there advice and just leave it, or where should I go from here? Should the warranty cover this? I really don't like the idea of knowing my engines leaking ANY oil no matter how *negligible* the dealer tells me it is

To be fair, that is a tiny amount of oil leakage. Ive owned and worked upon many 1.9 VAG diesels and they always look like a major oil spillage has ocured. I would ask them to log it, and maybe give you wriiten evidence that its been checked and found OK, then if youve any future problems youve got some comeback. Personally I wouldnt worry.

Thanks for the reply Will ask if they can provide me with some proof it was checked when I pick it up again later