Means you have your traction control off. You need to either turn it on and if it still doesn't work you'd need to get a scan to find out exactly what the problem is as it could be number of things.
Re: 4 Wheel, if there are no warning lights then you need not to worry
Wait till the road is wet, from standstill mash the throttle and car should take off like a scalded cat without the front wheels spinning. If the front wheels are slithering all over the place then you do have a Haldex problem.
It was weird , there was a lot of standing water around and I hit a fairly big puddle and the light came on and wouldn't go out until I turned the engine off and back on again. Does that mean I've got a problem ?
I'm willing to bet it's a wheel speed sensor that threw a fit and a restart of the car sorted it. Scanning the car with VCDS will reveal all, but if it doesn't come back, then nothing to worry about.
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