it starts up fine and then after the engine is shut down, it won't start up again. the battery is not discharged.
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I have a '96 GTI and had a similar problem.
If your key is the same as mine (post key, with male end with contacts on the doo and the key is female), it could be that post. Mine went out, and in talking to the service guys, it turns out that the key posts are solid state and they burn up after a few years. I replaced it, and that solved my problem. This is after I tore into the starter, timing cover, etc. to try and figure out.
What sucks, is that you have to just guess on that part and replace it. There is no way to test it, other than what we've discussed here. It's a $100 part, and a BITCH to replace unfortunately. You could buy one, plug it in, and try it, and if it's not it, return the part (if they allow it).
Other than that similar problem, my GTI has been great. Good luck.