If you disconnect the battery some sensors/settings may need to be reset. While a VCDS is not needed for all of these procedures it's helpful in checking the steering system. If you have power seats you have to reset them too, see 1000q: memory seats reset and easy entry for details.
The recommended way to reset it is to do this procedure:
Start the engine and turn the steering wheel all the way to the left, hold it for 2 seconds, and all the way to the right, hold, and return to center. Very slowly drive forward for about 20 feet and stop. Wait for 2 seconds and shut off the car. Wait for 2 seconds and then start the car. The stability control light and steering wheel light should turn off after 5 seconds. If they do not, repeat the procedure. I've done it this way and just by driving normally and both seem to set the sensor fine.
If it still doesn't work, use a VCDS to thoroughly check the steering system and reset it. The procedure below can also be see at the ross tech VCDS wiki: http://wiki.ross-tech.com/index.php/VW_Golf_%281K%29_Steering_Assist
Steering angle sensor (G85) reset
Note: This applies only for Models with Conti/Teves MK70 ABS/ASR. For Conti/Teves MK60 ABS/ASR/ESP look at Vehicle specific specific Procedures in ABS system documentation.
Start the vehicle.
Turn the steering wheel one turn to the right and one turn to the left.
Drive in a short distance straight line on a level surface at a speed not higher than 20 km/h.
If the steering wheel is straight during the test drive then stop the vehicle with the wheels pointed straight.
Ensure that the steering wheel is not moved again.
Keep the engine running and do not switch off the ignition.
System voltage at least 12.0 V.
You must have the ross tech VCDS tool to do this procedure.
Plug in your VCDS and enter control module 44 - steering assist.
Click on Coding - II. If that function isn't available then click on Sec.
Access - 16.
Enter 40168 and hit "do it!" to enable the basic setting.
Click on Basic settings -04 and enter 060 under "Group". This
will take you to Group 060. The first block should say "OK".
To make sure it's really OK, go to measuring blocks -08. Hit
"up" 7 times or enter 7 to go to Group 7.
The first block should be between -1.5 and +1.5 °.
Note: After successful basic setting, the Steering Limit Stop needs to be adapted too.
With the engine running, center the steering wheel (±10°) and hold it centered for 5 seconds.
Turn steering wheel completely to the left and hold it there for 2 seconds.
Turn steering wheel completely to the right and hold it there for 2 seconds.
Center steering wheel (±10°).
Switch the ignition to "OFF".
Switch the ignition to "ON" and wait 5 seconds.
The yellow steering wheel symbol on the instrument cluster , the steering assist warning lamp should turn off. If it doesn't, perform a short test drive.
Checking Steering Torque Sensor (G269)
Engine ON (Idle)
System voltage at least 11.0 V.
[01 - Engine]
[Meas. Blocks - 08]
Field 2: Steering Torque Sensor (G269)
Turn the Steering Wheel multiple times completely to the left and right. The Torque Values should change.
If the Torque Values do change, it's most likely an intermittent Fault in the Wiring/Connectors.
If the Torque Values do NOT change, the Sensor itself or the Power Supply (Terminal 15) might be faulty.
Field 2: Power Supply (Terminal 15), Specification: "Term. 15 ON"
[Done, Go Back]
[Close Controller, Go Back - 06]
If you want to adjust the level of power steering assist, see 1000q: power steering assist adjustment.