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Finally I got around to remove the EGR, Intake manifold and finally the turbo. With the intake out I saw that it was 80% clogged. I removed what I can with a flathead and brake cleaner and then soaked it with paint stripper. After 2 hours of soaking, I washed it with a pressure washer and brake cleaner and it was so much better. I did all of this while waiting for PB blaster to soak the turbo housing. Unfortunately, we couldn't get the housing and deemed that it has fused. My friend tried to free the vanes by moving the lever with a pry bay and managed to do so. After a few open up and down motion on the level it feels like the vanes are moving freely. I hesitantly put the turbo back on the car because I know that I should really have opened the turbo casing and clean the vanes but I just didn't see a way at that time.

My friend also made block off plates so EGR related parts can be removed. Hopefully it won't be a bad thing except for a CEL. I have to stress that it takes at least twice the time to fix the turbo on new beetles due to their limited engine space. It did take us the whole day but I am an amateur. I took it for a run today and I can finally hear the turbo spool. I can feel more power too of course. My concern now is that I can hear a grinding/rumbling sound when idling or driving that originates from the turbo side of the car. I have no idea why. I'm pretty sure everything was tightened down. Anyone have any input?

In retrospect, if I knew that the turbo would fuse, I would just concentrate on getting the actuator off and working the vanes until it is free. Taking the turbo off is pretty time consuming and if I have to go about it again, I will seriously consider upgrading. Lastly, thanks for help guys!
How the performance of your beetle on an uphill? Mine slows down considerably on the freeway on a pretty steep slope. ex 10 fwy in pomona CA. went from 75mph down to 55mph. Downshifting didn't help and I don't know if its normal. I only have my car for about 300 miles. Its clocked at 230k miles now.
 
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