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That last post was also very helpful, thanks Shadow_Rusty. Lots of progress has been made today.
The last dude who had this problem said it was the clutch packs in the diff that were screwed and he got it fixed at J&F Motors in Richmond, VIC. I just called up the mechanic there and he explained everything to me and it makes a whole lot of sense.
He said the binding when turning in a tight circle is either one of three things:
1. Faulty Haldex controller
2. Failed Haldex pump
3. Clutch packs screwed after Haldex service neglect
Basically since I couldn't find any fault codes he said it would be something mechanical, which is the worst case of the clutch packs stuffing up. This is normally due to the Haldex not being serviced regularly which lines up with my car's service history and what my other mechanic said. Upon closer inspection I just realised the Haldex service was missed. Firstly it was done at 30k or 45k, then not again until now at 120k. That's at least 75,000km without a Haldex service.
He said he's done this a couple of times before and the costs involved were:
-$1600 for a second hand (tested) Haldex assembly unit
-New Haldex and diff oil and filters
-8 hours work
-Total of approx. $2700 for everything
Not getting it fixed won't make it worse, but would put extra stress on CV joints and the axle, etc. This officially sucks.
VW Bora V6 4motion

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Isn't the specified service interval for a Haldex unit 40,000 miles? That equates to 64,000kms.
$1600 for a 2nd hand Haldex!?!?!
If I can't get my diff reconditioned for a decent price I am looking at importing a unit from the UK. 200 pounds for 2nd hand complete diff and Haldex.
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an update on the intermittent ESP on my 4Motion:
1. Lat accel sensor intermittent - however considered advice was that yes replace but also ensure all suspension geometry front and back is up to spec - meaning replace any worn bushes etc prior to recalibration - sensor replaced - first replacement sensor sent was also faulty - the device is quite susceptible to shock
2. used the opportunity to put new Bilstein gas shocks all round, new front rubbers all replaced with TT 'harder' units
3. Haldex fluid and filter serviced (noted despite three Haldex stealer services, at 175000 clicks, original metal body filter was still not replaced - thinking anger
Car is 100% - big thanks to Phil and Joe at Golfwagen in Perth.
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Well it's been a long time coming, but I now have a definitive answer to what was causing my issues.... yep, it's confirmed it was just the Haldex controller! I finally managed to fit the working controller that was lent to me to test and it was perfectly fine immediately. I guess that has saved me a fortune after a wrong diagnosis by a VW tech.... It pays to do your research guys!!!
I have to say a big thankyou to vwsport on this forum for loaning me his old spare to do the testing...so cheers mate
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