I have activated this on my 1.6tdi, anyone else has activated this or has it from factory.

http://www.autoguide.com/auto-news/tag/xds

Interesting! Seems to be a good bit of software to turn on, but how do you (presume Vag-Com) activate it and also whats your findings compared to it turned off?

IIRC the FL VRS has that as "standard". Interesting if you can just turn on the software on other models!

Whilst it is a software program not sure if you can just turn it on.

My Vrs has this. My previous car (Mk5 Golf GTI) had effectively the same chassis but did not have XDS.

Whilst XDS is no LSD, its a heck of a lot better that the earlier systems. My golf cut all the power when it detected wheelspin, very frustrating and lead me to switch the TC off pretty frequently. The Skoda just brakes the wheel which is spinning and keeps the power coming, so much less jerky and a big improvement IMO.