Sudden Power Loss

[Nathan Winters]

Friday I took the car to work and back, took it out that night as well then parked it all weekend.  All was well.
This morning the car seems to miss when accelerating.
At speeds over 65 in 5th it doesn't cut out until the car develops about 5+ psi of boost.
At lower speeds in 5th, 50 and under, it is losing power even under light throttle.
In neutral I can rev all the way up, only under load does it exhibit this behavior (I feel like I'm not describing it well enough, but hopefully I can get this across)
The car also idles without a problem.
I blinked codes and the only one I have is a 2111 code which is related to RPM sensor.

2111 (Blink Fault Code), VAG1551/2 Fault Code Number 00513 RPM  sensor Open or short circuit, Defective sensor & cables, metal fragments  on flywheel teeth 

SJM states to make sure that the car is running (which I did) when checking codes so I don't get a false 2111 and I don't think that mine is false.

Can anyone offer 1st hand experience as to what happens when this sensor starts to fail?  Can I get some tips on where this sensor is and what is involved with replacing/troubleshooting?

Thanks,

Nathan