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I was a bit sceptical about the timing belt too when he said but they seem to have really good reviews so I'll trust them. He said its not about to come off or anything but its got some slack and they should be really tight. He said they tested the timing and it was fluctuating between + and - whatever that means!?
 
I'd get them to change boost pipe and egr first. See how that goes for a few weeks then go back with ' timing belt' issue. Never heard of that!
 
On the old TDIs (non-PD ones) you used to be able to adjust the ignition timing to slightly advanced, which would help improve mpg.

I'm not aware this is the case on the PDs, I think it sorts itself out electronically as there is no adjustment on the injection pump. It's a completely different design.

It sounds to me like whoever changed the belt last on your car was just a little careless, and is a tooth or so out. It is true they should be tight, minimal slack.