This is not a question but an updated of a problem disussion that has been closed at: http://community.cartalk.com/discussion/comment/2905265/#Comment_2905265
After I could not figure why I was having the alarm light I drove the car to a mechanic, explained my sleepless nights and many hours of problem analysis, and then the mechanic took his code reader, connected to the OBD car port, made a few clicks, and charged me $45 and then sent me off. The alarm light has not been back since - it blinks as expected when I start the car.
On my further research I have found that VW airbag light will come on if you check airbag with your gheto OBD code reader - exactly what I had read! It registers “high resistance”, and must be reset by someone with a qualified code reader!