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Speedy,
From your description, I understand it happens under hard acceleration (if you rev to 7000 in neutral or if you do it in just first and/or second it doesn't happen).
If it happens under a combination of circustances (7000 in third after pulling hard through the whole third gear), it has nothing to to with the high revs themselves
Could it be oil starvation caused by the amount of Gs your car is pulling (for such a long period) under hard acceleration.
A deep sump has to cure that, but it might not. If not you have to extend the oil pick up to the back of the engine.
It has happened to me (not in a Bug though)
I agree 20psi is too little, specially on a turbo engine. This could be caused by an bunch of reasons.
Regards,
Marcelo
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