Well, just over an hour and the MD came over to talk with me, he explained that the by-pass valve had failed – this pushes air around to the front of the turbo to keep it spinning and increases performance.. when it fails it produces a "flapping" sound, which the beetle has had since i bought it!!
He offered alternatives i.e. stock plastic once or a replacement aluminium one (i chose the ally one). He explained that he used to be a manager for a VW dealer and the work they carried out last Tuesday should only of taken about 15 minutes (I was stiffed for 2hrs labour). He said that the tests they performed were just "cop-outs" and they weren’t really using their heads.
They are also going to perform a 30k service and look at the droning noise at ~2,500 rpm in 4th and 5th. The local tyre place said it might me bearings, but I’ll leave it for these guys to look at.
More updates as and when…