Are you sure that anything is damaged internally? Would you be able to drive with the symptoms of only a 'slight rattle' if timing was off and valves hitting or even stuck open due to being bent?I feel very optimistic... makes a change :roll:Sure it won't start now but that's another issue
AZ, you are right! It is a pretty poor effort on the part of VW to turn out stuff like that. 500 euros is not a bad price for a guaranteed running engine supposing that it is in fair shape. But what if it is not and needs more work as well. Besides the crank nose on that one may be in worse condition. Most wreckers only give guarantee against total failure. Sometimes the devil you know is better than the devil you don't know. I am no expert on the AAZ motor but from your pictures the crank nose looks okay. Maybe just a new sprocket, bolt, and some locktight will do the job. Top end parts like valves are cheap to replace. If you are there you may as well do it right.
I am not sure what sort of a mechanic would recommend a fix like that! The heat will destroy the seal immediately behind the sprocket (major oil leak will follow) as well as probably destroy the bearing behind the seal. Then you really do have a mess on your hands. There is no easy way to fix things right. Don't let some knob who thinks he is a mechanic try a stunt like that.