Frazer,
Sorry - didn't realise you were that far north!
I can't answer your question, but the manuals on Rick Cannell's site will have wiring diagrams, which will have the answer.
BUT, as a general description, VW's of that era tended to have a second temperature sensor in the waterways somewhere, which simply turned on an additional injector to throw some more motion-lotion into the inlet manifolds when it was a bit nippster. The temperature sensor was the usual point of failure, but the wiring could also fail as could the injector (usually blocked).
More modern cars have the whole thing driven from the single temperature sensor which tells the ECU what temperature the water is at. The ECU then decides what to do at a given temperature - so it could include turning on the fan or enrichening the mixture or changing the throttle response curve.
I don't know how sophisticated the S2 is in this respect, but suspect you are looking at the former (cheaper to fix, easier to diagnose) than the latter. (If it is the latter, you would expect to see a number of other temperature-related problems with the car as well, as a number of things will appear to go wrong at the same time.)
Either way, if the kangaroo-hops are related to temperature sensor issues, they should go away once the car is up to normal operating temperature. If they don't, the diagnosis is wrong.
Oli.