It could be one of the flaps that control air flow into the cabin that is faulty. The air flow positioning motor could be stuck on "cold" or the main flap positioning motor could be stuck.
Take it to a local garage and ask if they have "vag.com" or the bosch diagnostic tools to see what error codes come up. Most places (not vw dealers) will do this for free or a small fee. VW dealers will want £40.00 off you just to tell you how much it will cost.
I believe that a faulty/leaking heater matrix should also show water in the cabin or bad condensation on the windows as a symptom as well.
Matt Slack
November 2007