Speed Sensor in Transmission

So I took my Jetta to the dealer (first mistake) because my speedometer is not working, nor are the power locks (not locking after 10 mph or whatever). So the dealer says that the speed sensor in the transmission went out, and that this would cost $1,600 to repair!!!

Is that a common problem??? Has anyone had this done before? How much did it cost?

Yo Man, My speed sensor went out in my 97 jetta, so I called the closest VW place. They told me what to look for, since i like to fix things myself...and I did, the sensor itself is held in by 1-star-bolt. Which takes all of 2 minutes to remove the whole sensor. The problem is that sometimes the sensor gear grinds the other (plastic) sensor gear IN the transmission down...and you have ot remove the tranny
Now I'm trying to find a new sensor, cause I found that mine is bad. And VW want's to charge me $59 for it...Anyone out there have a spare?

James