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That looks like an extremely expensive resistor to me.

Do resistors work?: Yes sort of.
Do resistors bugger things up?: Yes quite a bit.
 
If you open up one of those boxes I doubt you will find a "chip", just a resistor that costs a few pence

the resistor fools the ecu into over fueling and will probably make your car smoke a bit and may reduce the life of your cat

25 bhp :lol: more like 5-7 bhp

IMHO don't bother, get a proper remap done
 
yes, just a resistor in a box, makes the engine think the fuel is wamer than it is thus injects more. A very rough method of increasing performance on a TDI. Theres been tons of chat before about them so have a look/search back through.

But the general concensous is to not bother.