Since the leak appears to orginate above the oil pan, there are three possibilities: a cheap and easy one, and two hard and expensive ones.
It could just be a leaking valve cover gasket. You can tell if this is the case because after leaking a certain amount, it stops. Basically it only leaks while the engine is running and for a little while after the engine is shut off. Your picture #1 makes it look like perhaps this is the case, since you are getting drips across the whole width of the engine. It's an easy do-it-yourself fix, and a new gasket is probably around $10.
It could be, as has been mentioned, a leaking crankshaft seal. It could also be the intermediate drive shaft, though the procedure for repairing either is the same. In fact if I read the book right, the part is the same too. Which is leaking should be obvious once you remove the timing belt cover. The Bentley says you do not need to remove the engine from the car for this job, which is nice. Simply remove the timing belt and the sprocket, then pry the old seal out with a screwdriver and use "special tool 3083" to install the new seal. The Haynes agrees that you can leave the engine in, but says "special tool
10-219" is necessary to remove the seal and "special tool 10-203" is necessary to install the new one. Doncha hate it when you get conflicting answers??
Finally, it could be the head gasket. If neither your valve cover nor crank nor intermediate seals are leaking, elimination leaves the head gasket. I've done head gaskets on diesel Rabbits a couple times now and it's not too bad, just make sure you have the correct triple-square (12-point) tool to remove and install the head bolts. Torx will NOT cut it! (Gotta use new head bolts too on reassembly, they're "stretch" bolts.) You also have the choice of getting a special tool to get the exhaust spring clamps on and off, or leaving the exhaust manifold in the car and just unbolting the manifold from the cylinder head. I've done it both ways and prefer to detach the manifold from the head, but I do have long and skinny arms to reach back there with. ;) Also, the special tools for locking the cam and injection pump in place are nice but not strictly necessary. There are marks you can line up to make sure the timing is correct, it's just more hassle without the locking tools. A third hand helps too.
But, as long as you are topping off the oil and the oil is not getting on the timing belt, you can drive it like this for as long as you want. If it's fouling the timing belt, I would fix it ASAP and replace the oily belt while I was at it.