Hi, I had issue with steering as well.
Symptoms of my fabia 1.4 mpi 2000: power steering light on dashboard went on and off, steering become unstable and after two days steering become heavier permanently with the light on all the time. With lights on and steering, all lights were literally flashing. Fuses –ok, the liquid in the pump –ok.
I’ve removed the nearside bumper grill trims and fog light, disconnected a power steering sensor from the pump, started engine, switched on the lights and “voila” no flashing lights indicated that the PAS is faulty. It was the old plastic one, replaced it with the metal ended ones which I bought from skoda dealer for £98 (august2010). A good description how to replace PAS is on fabia-vrs.com
Hope this will help somebody to save couple of quid.