2001 power steering rack

i just took my 2001 manual shift neon for a 'summer special' check to the dealership, and was given the good news that i have a leaking power steering rack (which would cost $1200 to replace). apparently some seal is leaking andit costs $800 for the part, $400 for the labor.

i realized after 2 years of taking my old car to the same garage, that they were totally ripping me off. so now i'm trying to lower clueless level and triple check everything before doing anything to this car.

i stopped at autozone to buy some steering fluid, but needed to call the dealership to find out what type of fluid (since its manual). while i was there i checked how much a rebuilt power steering rack would cost and was quoted a hugely different $150. have yet to call the dealership and ask them what is going on.

any ideas? advice appreciated ...