Your repair time is not too far from the mark. These take around 3 to 3.5 hours to remove & install. Usual exchange price for these turbos are usually in the region of £695 plus vat from your dealer. As Darren has said, dealers have massive overheads, hence massive quotes! I'm a little concerned as to the reason the dealer has come to the conclusion that the turbo is at fault as these do tend to store codes as soon as any boost pressure data varies from the norm. If you have access to a decent Diagnosis Platform, run the vehicle & actuate the N75 boost pressure control valve via the tool & observe the actuation linkage. You will soon see if the VVT is sticking or rough during actuation. If this appears to be ok, connect the tool to the vehicle & take for a test drive. Load the vehicle in 3rd or 4th gear and observe the boost specified & actual values in live data. For some reason, VAG's maximum permissible boost pressure before faulting out usually appears to be 2601 mb on most models. If this figure is acheived, these vehicles drop into limp mode and lose all boost control until the ignition is cycled off/on. From memory, your normal boost readings should give a maximum of around 2395 to 2495 mb. As Andrew has suggested, I would do a complete scan of all ECU's as well just to be sure there are no faults elsewhere causing the lamp to illuminate. Sorry for the longwinded reply,
HTH, Gunner.
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