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Check Engine Light...Water Pump?
How much coolant are you losing exactly and over how long a time period? Has the car ever overheated into the red? Any accidents, even minor to the front end? Do the pipes look like they're drying out and starting to crack? What year and make is the car?
Usually you'll crack a head when you overheat the engine. (Overheat meaning the thermometer goes up into the red) If you're losing coolant from a leak, the easiest way to check is to park the car and run it for a few minutes then look on the driveway to find any drips. If the heads are cracked, and you're losing coolant that way, I can't think of a time where you wouldn't see superheated steam coming out of the exhaust pipe. Let the car run till it's up to temp for a bit. Like drive around for half an hour or an hour on a normal 60 degree or warmer day (to work, the mall...) then park it and leave the engine running. Get out, walk behind the car, and look at the tailpipe. If you see some steam or something that resembles white smoke still coming out odds are the heads are cracked or the gasket is no good for one reason or another. It's a fairly simple job, but there are a pile of important and meticulous steps. Don't know what it would cost to have a garage do it, but you can get a good price on the parts (gasket and/or head(s)) from 1-800-VW-PARTS. They are a salvage yard specifically for VW parts so you can pick either a new OEM or salvaged part that carries the same guarantee.
Oh, and for the check engine light... take it to the nearest major chain auto parts shop (pep boys, auto zone, kragen) and they'll read the code for you to tell you what's wrong. May have nothing to do with the coolant.
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