The light appears in orange on the top left instrument panel on an 02 Beetle Turbo S 1.8L.It is a triangle with and exclamation point inside with a counter-clockwise circle arrow around the outside.

That is your traction contol indicator, and if that light is on it means your tcs is off so if you floored it the wheels will spin (burnout), normally its on always so this will not occur.

ya what babino said its probably best to turn the traction control on unless your a pretty good driver

if it comes on and you have not turned it off than you are most likely on a slippery surface and it is turning on the ASR which helps the car get better traction