Help, Save My Audi

[RALIEN2@aol.com]

1990 V8 wouldn't go above 2000 RPM was cutting out, felt like a clogged fuel
fliter, replaced it replaced the 02 sensor problem still their, took to the
dealer. 
They said it was the speed sensor and due to the car having 55K mi I went to
replace the timing belts (210.00 apeice) and the water pump they said it was
best to replace it while doing the belts, OK we are now at around 1600.00
belts , water pump, and speed sensor. 

Car still won't go mechanic says it is now the fly wheel (pinion gear). They
said it was used by the speed sensor to coordinate the firiing. He said that
5 teeth were chewed up by the starter. That is now th reason the car won't
run. another $1800.00 plus to repair
($750.00 for starter alone).  So now  I am at  $3400.00 plus. 

Seeing as this is the first car in my life that ever needed a flywheel due to
the starter
especially when there is a one start at a time lock out.  The first one I
ever heard of using the pinion gear teeth for the speed sensor. 

My gut tells me  one thing but my lack of knowledge can not rule out the
possibility they are correct. Does any body know if this is for real?