Wheel Bearing Replacement for $300

["CHRIS AHOLA" <aholact@songs.sce.com>]

     My local independent mechanic said he needs to replace the right 
     front wheel bearing on my '87 5KCSTQ.  He wants $174 for the 
     wheel bearing kit and $137 for labor.  That's a total of $311 to 
     replace one wheel bearing.  
     
     I called two parts stores and found that I can get the bearing 
     for $38.  I then called back my mechanic and told him that his 
     bearing kit was way over priced so he agreed to charge me $97 for 
     the bearing, which I feel is still over priced.  Then he said the 
     left front bearing may also be bad but they will not know for 
     sure until they replace the right bearing and test drive it.  Now 
     I'm possibly looking at spending close to $500 to have two wheel 
     bearing replaced that I can buy for $76.
     
     So my questions are, Should the mechanic be able to tell if both 
     bearings are bad at the same time?  Can I replace the bearings 
     myself?  Do the bearings need to be pressed in?  Does anyone know 
     of a good honest Audi mechanic near San Clemente, CA?
     
     Thanks,
     Chris