The Upsolute Chip is one of the safest and smartest mods you can perform on your TDI. Even some with strong beliefs of keeping the car 100% stock have made an exception to this software upgrade.
In reality, the Chip does indeed improve your MPG (overall) as it advances the Injection Timing closer to what European TDI's are set at and better optimizes the combustion process with more effective controls on key components.
In short, I like to refer to the Upsolute Software as similar to the ECU folks in Germany benefit from.
Moreover, in city driving people use whatever power is available, so Forum members are naturally reporting a little less MPG than before, but admitting they're also working the engine harder around town too, with this small trade-off being "well worth it."
As for freeway driving, more often than not, the Chip Upsolutely increases MPG due to a more efficient software program and emissions are a nonissue with the Chip.