the same happened to mine! i just took it off and with a bit of welding its been fine ever since. i sealed the unit with silicone so the water shouldnt get in anyymore.
welcome owned my gti for 2 years an never had any mechanical problems, 1st thing you have gotta do is drop it on coilovers and the handling is far better, standard suspension is far to high,as for 'how fast'?, ive suprised a few off the mark, but were not talkin mega quick.
whats ur first impression of the falkens? i have them and the rim protector is excellent, and they look like they have a little stretch, grip is good too i think