Autolamps provides the best kits available. i bought one from them for my VW. They gave awesome service and delivered an great product. The pic you are flashing... why does it have that connector on the end? were you trying to put a non-converted bulb into a stock headlight? my kit plugged right into to my stock wiring harness. Nick is a great guy. That burn does not look like a defect.
I have had 3 different kits in my days.... Two korean, one autolamps. There was a huge difference in quality ust between the bulb construction.
Autolamps rocks.
sean
www.vwvortex.com 
