octavia 2004 turbo

hi just found out the turbo is u/s on my 1.9tdi garage said it would be ok to use as it is fine some days but then no power dont no if this is right also the eml has just come on car does as normal when no power turn off and on and its ok just wonderin if il do any damage got a dispute with warranty company as only had car 2 months they said they will only give me £200 as max warranty claim is this right also would get it done straight away but £650 for turbo and dont no how much labour is would like the warranty company to pay any idears thanks for reading rinky:thumbup: