Camshaft Position Sensor - check
Seems like you would want to double check to see if the camshaft position sensor is really bad.
Haynes VW 1998-2005 Repair Manual says:
"The camsahft position sensor, ..., determines the ignition timing and fuel injection synchronization on each cylinder.
Check: Performing the folling test will set a diagnostic trouble code and illuminate the Check Engine Light. Clear thediagnostic trouble code after performing the tests and making the necessary repairs.
The camshaft position sensor is located at the front of the cylinder head under the timing belt cover. On 2.0L models, the camshaft position sensor is located behind the camshaft sprocket and is equipped with a pigtail lead and a remote connector. On 1.8L turbo models, the camshaft position sensor is located at the front of the intake camshaft. check the terminals in the connector and the wires leading to the sensor for looseness and breaks. Repair as required.
Before checking the camshaft position sensor, check the voltage supply and ground circuits from the ECM. Dosconnect the electrical connector from the camshaft position sensor and connect a voltmeter to terminals 1 and 3 at the harness connector from the camshaft position sensor and connect a voltmeter to terminals 1 and 3 at the harness connector. Turn the ignition key On - the voltage should read approximately 5.0 volts. If the voltage is incorrect, check the wiring from the camshaft position sensor to the ECM. If the circuits are good, have the ECM checked at a dealer service department or other properly equipped repair facility.
To check the camshaft position sensor operation, reconnect hte connector to the camshaft position sensor and using a suitable probe, backprobe terminal no. 2 of the camshaft position sensor connector. Connect the positive lead of a voltmeter to the probe and the negative lead to a good engine ground point. Turn the ignition key On. Rotate the engine slowly with a breaker bar and socket attached to the crankshaft pulley center bolt while watching the meter. The voltage should fluctuate between zero volts and 10.0 volts as the vanes in the reluctor wheel past the sensor. If the test results are incorrect, replace the camshaft position sensor. Note: Rotate the engine slowly through at least two complete revolutions. Removing the spark plugs from the engine will make the crankshaft much easier to turn. Warning: If you remove the spark plugs, unplug the primary (low voltage) electrical connector(s) from the ignition coil(s) to disable the ignition system.