Major Passat GLX brake issue

We've been looking at new cars recently, and my longterm 94GLX must
have noticed because a significant brake problem has cropped up.

Symptoms:
Leaving work today, the Brake and ABS indicator lights lit upon
ignition, but did not go out after a few seconds, as per normal. In
addition, I had no airflow on the heater/AC controls whatsoever. Ok, I
assume I can limp it the 3-4miles to the sitters to pick up the kids,
and can deal with it after I get home a couple of miles beyond that.
She wasn' going to let me off that easy.

After about two miles, the brakes started acting a bit funny. The firm
pedal feel wasn't there, although a couple of applications would firm
them up to brake properly. Within a half of a mile of the sitters, the
brakes went really firm, as in rock hard, and stopping power was a
mere fraction of normal. It was almost as if I had replaced the brake
pads with greased blocks of wood. Scary, really scary.

I limped it to my sitters driveway and opened the hood for a look.
Brake resovoir was full beyond the MAX level. Odd. I borrowed a straw
and a screw top bottle from the sitters, and proceeded to get enough
brake fluid out of the resovoir (about 3-4 ounces, as a guess) to
bring the level down to MAX. I restarted the car, and the Brake and
ABS indicator lights went out after a few seconds, as per normal.
Proceeded to drive it around the block, and the brakes behaved as they
should. Upon returning to the sitters, I popped the hood, and noticed
the brake resovoir level was now around MIN. I added back about half
of what I took out, to bring it between MIN and MAX, bolted the kids
in, and carefully drove home without incident.

I called on old mechanic friend, who knows and understands German
mechanicals, albeit mostly of the BMW variety, inside and out. He
wasn't that familiar with the Passat, but upon mentioning that it had
a brake accumulator system (as per my owner manual) he mentioned that
BMW's use a similar system, and referred to it as a "brake bomb". A
bit of Googling indicated he is not the only one. He also indicated
that failure of such a device could yield the kind of symptoms (really
hard brake, extra fluid in the resovoir, and indicator lights) that I
had mentioned.

OK. Time to dig around on the net. My normal parts source
(Germanautoparts.com) did not show an accumulator. A general Google
search didn't help much either, although it did suggest that my 94 has
a pretty complicated ABS braking system (by ATE?), and that most of
the subassemblies are not available. A look at 1stVWParts, which I
gather is a reputable Left Coast dealer of factory parts, did show an
available accumulator, although not cheap. Still better than the
complete master cylinder/ABS assembly, at over $1000. A thread at
VWVortex, from somebody with a Corrado, indicated a method of checking
the hydraulic pump, by bypassing the fusebox/relay panel, and appying
12V to the pump. He indicated his problem was fixed by replacing a
number 78 relay, at less than $50. Tomorrow, I will try the pump
check, and try to find the relay and see if that is bad.

My real questions a (1) Has anyone seen anything like this and what
did it take to corect, and (2) is there any kind of trouble shooting
procedure to isolate what might be the culprit? Where to look for
parts? Should I stick to dealer parts (1stVWparts?) or can I find
something decent on the secondary marker or should if try for a
junkyard complete brake master cylinder assembly. On the latter,
anyone know of any reputable VW dismantlers that might have such an
item? Is there anywhere I can find a proper schematic of the system,
other than the dealer? Even though I don't trust dealer shop much, the
service manager, who is a decent chap, might let me look at the old
manuals, if they still have them.

I'm dealing with an 11+ year old car, and it doesn't make much sense
to throw $1000+ at the problem. From past experience with my local
dealer, I'm sure they would just advocate a complete ABS master
cylinder and related hardware replacement.

A few years back, the dealer couldn't even find a major power draw
that was eating batteries. I took it home, hooked my Fluke between the
battery and the hot lead, and found a 5+Amp power drain, with no key
in the ignition. Further, I found the power draw was not going through
the fuse box. Upon checking the dealer electrical books, I found the
safety systems did not go through the normal fuse panel, and isolated
to problem to the right automated seatbelt assembly. The motor never
shut off when the belt was retracted. Upon my findings, they finally
replaceded the belt assembly, and gave me another new battery. I'm
sure it was a fluke, but they just didn't seem that interested in deep
trouble shooting. Quick replacement of possibly suspect subassemblies,
especially if they kick a computer code, is more their forte. Thats
fine, if you on a warranty, but its not going to work in this case.

If I can get a start, I will order some parts, and drop it in the lap
of my BMW guy. He is the only guy, out of many, that has shown a real
knack for fixing the unfixable. He saved an ex-boss of mine thousands
of dollars, on an ABS repair of and Acura Legend, after tracing the
fault to a crapped up connector. One dealer suggested replacing the
whole ABS circuit, at over $2000, while another suggested
disconnecting it. Joe charged him for 6 hours trouble shooting and
sent him on his way. He also once talked me through a timing belt
replacement, on an old 1980 Rabbit, correctly naming every size and
type of wrench and socket needed to work me through the job, without
taking the whole front end of the car apart, as per VW recommended
practice. He is also a very cranky old fart...used to drive an old
1980's S-series MB, that he bought reasonable off a long time
customer, with GRINCH for a plate. He said he would look at my Passat,
although it would be helpful to know what was in there and what was
available.

Yeah, it got kind of long winded. Sorry. I've had her since new, and
I'm trying to stretch another year or two and 10,000 miles out of her,
if she doesn't run me to the poorhouse first. At this point, its
become somewhat of a grudge match. I'm sure others know what I'm
talking about.

A huge thankds, if you've made it this far.

David Glos