Volkswagen Forum - VW Forums for Volkwagen enthusiasts

I have a 2003 Jetta TDI which has had a carbon build up problem lately.
The waste gate has been changed and the carbon cleaned out but the car still stutters when first started in the morning. It also pours out blue smoke when first started. This reduces to a smaller cloud after a while.
The car sputters at low RPM's and has a new ticking noise which is affected by the rpm's.

The dealership tells me it is a blown turbo, and a bent rod in the engine.
The turbo is covered under warranty but the rod may not be. It is being inspected today by the extended warranty people from DFS.

Has anyone had a similar experience with an extended warranty? I have a bad feeling they are going to stick me with the bill and I would like some advice.

Thanks

Steve