The VW/Audi stealerships always want to take the "easy way out" and replace entire subsystems instead of troubleshooting the problem at hand. While that approach might be OK when VW is paying for the repair bill under warranty, that approach is BS when the repair bill is paid by an end-user...

You need to locate a trustworthy independent repair facility and have them actually troubleshoot the problem. Obviously, there's no logical connection between the A/C and the ABS systems, but a qualified technician will be able to troubleshoot the vehicle and unearth the underlying fault...

Is the "check-engine" light illuminated? Are there any stored DTC fault-codes in the ECU (your local auto-parts store likely has a generic OBD-II code-scanner that they can use to read-out any stored DTC fault-codes for free)?

 

You need to locate a trustworthy independent repair facility and have them actually troubleshoot the problem.
Is the "check-engine" light illuminated? Are there any stored DTC fault-codes in the ECU (your local auto-parts store likely has a generic OBD-II code-scanner that they can use to read-out any stored DTC fault-codes for free)?

All the "good" garages around here seem to cost as much as the dealer, or are too far to make it worth driving to.

Also sorry, no CEL but one code which I don't remember, but it was something like ABS Pump Faulty/Failure or something. Supposedly that part costs over $1000.

Actually there is a link between the ABS and the AC...its at the fuse block itself. Sounds to me like something is not right with the wires connected to the fuse block. Since the wires for the ABS and AC are near each other that they may have melted together somewhere causing a resistance that ultimately melted your fuse block.

So this was hard to notice with the covers on. I took them off and saw this tiny crack in the alternator wire...could this have done it? Maybe if moisture got in there?

 

Actually there is a link between the ABS and the AC...its at the fuse block itself. Sounds to me like something is not right with the wires connected to the fuse block. Since the wires for the ABS and AC are near each other that they may have melted together somewhere causing a resistance that ultimately melted your fuse block.

 

If you could get the exact trouble codes that are coming up; it probably will help you figure out what is happening. The ABS units on these VW's is a know issue and they can be repaired. If you diagnose the problem; as being the pump. Check out the repair options; they are out there and can save you a ton of dough.

There are other people who do this work out there; give these guys a call and see what they say.

ModuleMaster rebuilds ABS modules for as low as $100, 2 day average turn-around, 5 Year Guarantee

https://www.google.com/search?rlz=1...p=chrome,mod=16&sourceid=chrome&ie=UTF-8&q=volkswagen+abs+control+module+repair

 

So this was hard to notice with the covers on. I took them off and saw this tiny crack in the alternator wire...could this have done it? Maybe if moisture got in there?

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It could be. There could be more damage internally so I would replace it to be sure. It's inexpensive and fairly easy to change. I would check out the wires to the right as well. After being exposed to enough heat to melt the fuse block the wires could be damaged or even melted together somewhere.