thanks for the comments.
as mentioned in my original post
"Not wanting to start a war between people and their tuners, have people actually witnessed on their cars the claimed increase in output? As far as I've seen on some of the dyno threads, the outputs have been far below the claimed (taking into effect the crank vs wheel figures)"
A dyno is useless for what you're trying to do as it has too many variables and often they're done on dyno days so the cars are churned through with little regard to a quality dyno.
What matters more is a before and after dyno but most importantly how fast it feels afterwards.
Do you not think a custom ecu would be better than a off-the shelf quick instal unit (even if the generic R+D has been done)?
No, the amount of work that goes into creating a flash is not something that one guy who has done a few mercs and holdens can do. The fixed price he gave you is worthless and I doubt he could do anything half decent for that. He won't know how to run the engine safely, nor will he know about the fuel pump issues and how to get around that and at best you'll end up with a crap tune and at worst a destroyed engine.
It's ridiculous to think you can get a custom tune for that amount of money and the 30 day guarantee is useless. What happens when VW load an update on and he has to start again?