I am currently in the middle of fixing a timing belt problem. Have not removed the belt completely yet, and I have not determined the root cause of the damage yet. But the dealer was involved in making the damage severe due to their incompetence and ignorance.
My lifters were damaged (shattered) and the cam lobes were damaged. Doing the repairs myself including purchasing a new head are costing about $2K
please follow the earlier advice and find a TDIclub recommended person to service the timing belt or do it yourself. I will be doing all my own future maintainence.