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when I was a wee lad someone told me it was Special Edition but I have no idea. E usually stands for Executive in most cases. What ever S stands for it usually means you get extra toys from factory spec.
I had an SE car once, it was "Sports Executive" but i dont remeber what the car was lol! wasnt a Polo, i think it was an old mazda iirc. but yea... dont forget VW are german and somtimes its a german word. like the R in VR6
S uaully stands for Special cos you always get the extra toys. However, in the case of polo's i've heard some don't come with the extra (not even electric windows). Its basically having the normal CL's with 16v bumpers, tinted lights etc and alloys.