HOW TO INSTALL THE TELEPHONE ADAPTER IN YOUR TOUAREG'S AUDIO PLUG IN THE NAVIGATION RADIO:
Parts/Tools Required:
TELEPHONE WIRE KIT:
1 piece 3 foot long audio only cable with 1/8" mono plug at one end and 2 contact that fit into the existing radio plug on the other end.
1 piece 3 foot long wire with contact at one end for MUTE function, other end bare to connect to your car kit.
Wire color may vary from photo.

Click here to for details on how to purchase any of these items.
4 pieces, radio removal tools, which I now offer.

1 - car kit - I used a Nokia CARK-91US in my installation. Complete Car Kit (CARK-91US)

1 - mount - I used a KUDA mount in my installation. Purchased from this seller on eBay.

Logic and explanation
The audio input plug (green plug) in the Touareg Navigation system has two inputs. One is a stereo auxiliary audio input. The other is a mono telephone input. The portion of the connector that is for the telephone and stereo audio is empty. So with the cable you have purchased, you can fill the connector with positive and ground. There is also another plug in the center of the big black connector on the radio that has the MUTE function for the telephone. Here is the plug details. The audio only plug is in the upper left hand corner of the photo and the markings for the telephone audio are TEL AF+ and TEL AF-. The MUTE function is in another plug shown in this photo and is marked TEL MUTE.

Here is a photo of the actual plug in its green plug body.

Radio removal and Installation of wires in the plug
1) Insert the longest end of radio removal tools with the taper facing in towards the center of the radio into the slots shown here:

2) With all 4 tools in and locked in place, gentely pull on the tools and the radio should come out.
3) Work the radio and the two attached cables all the way out and lay the radio on a towel or blanket on the center console.
4) Remove the radio removal tools by pressing on the 4 brass tabs on the side of the radio just behind the tool slots.
5) With this procedure, it is necessary to remove the big black plug from the radio. When I did this with my car, I did not need the radio code. But you may need it for yours. I am not sure. So be sure you have the radio code before proceeding.
6) Squeezing the black tab on the bottom of the big black plug, lift the black bar at the bottom of the big black plug and pull the plug out.

7) First we will install the MUTE wire. Looking at the photos below, you will see in the first photo the way the plug looks without the MUTE wire in place:

The third hole down on the right side is where we need to plut this wire:

To put this wire in place, you need to remove the purple pin in the top of the plug:

Then insert the MUTE wire in the correct hole and replce the purple pin:

8) Now it is time to install the telephone audio wires. Pull the green plug out.

9) Lift the little tab on the green plug body and slide the black plug out of the green body.

10) Insert the two audio wires into the plug as shown here. BE SURE THAT THE LITTLE POINTED SIDE OF EACH CONNECTOR IS FACING OUT SO IT CLIPS INTO THE CONNECTOR AND STAYS!!!

11) Slide the connector back into the green plug body.

12) Push the plug back into the radio.

13) Now connect plug the audio plug into your car telephone kit and attach the MUTE wire to the mute function on your car telephone kit and you should be able to get this screen when the phone is making or receiving a call:

At this point, the radio should have muted and you should only be able to hear the telephone audio. Another interesting thing to note is that you will still hear the navigation system audio if the navigation is active. So don't be navigating to your favorite love nest and call your wife at the same time!