$2K?
Sounds like you're friend wants you to scare you to sell that car.
If you're not into DIY with a mk2 1.6D, you probably never will be. It's about as simple as they get.
On the other hand, used cars are everywhere and gas is cheap. Good luck
Yeah, 2 grand just to fix an axle back to the trany flange.
Even if the flange needs replaced it's a 2 hour job and few parts.