99 New Beetle Water Pump DIY?

I have a 1999 VW New Beetle with 110,000 miles that appears to need a new water pump. I noticed a coolant leak coming from the passenger side of the engine, dripping off the oil pan. There are no coolant hoses in that area that I could see, and the reservoir isn't leaking, so the water pump seems to be the general concensus. My questions are:

Should the timing belt be replaced at the same time?
Is this a job that a "shade tree mechanic" could handle?
I have a repair manuel, but it speaks in fairly "general" terms. Does anyone know if step by step instructions exist? The price I got from the dealer was $425.00 plus tax for the pump replacement alone, and if he replaced the water pump/timing belt w/tensioner, he quoted $665.00 plus tax. I would appreciate any opinions!

For my 2 bobs worth I'd say do the belt/tensioner and the pump at the same time.....ask around for prices (Ebay?) as they sound very high....and most manuals have to give details for different versions of the NB so directions can be a bit hazy but the job is not rocket science. Haven't done this one myself but plenty of other have.
As long as you take your time and use your common sense you should be able to save many hundreds of $$$ in labour costs....plus that sense of satifaction.

YES... do the timing belt at the same time, as well as the serpentine belt, the idler pully, and the belt tensioner. Make sure your water pump has the metal impellars, too.

In fact, like hako stated, check other sources for parts. You should be able to find a timing belt kit for the bug on eBay for around $150-200 depending on the kit and your engine. Make sure that you know your engine designation (three digit code like AEG) found on top of your timing belt cover. (At least that is what my Haynes manual said.)

Do your eBay search like this "vw timing kit" and that will give you some good results.

As for DIY, I am not sure. Depends on your confidence level for tearing apart that side of your engine. If you have never done it before, I might want someone there who knows a few things in order to help out. That is how I am. Sometimes, if it looks simple enough, I will jump right in. But, if it is something that will leave me stranded if I mess it up, I will either take the parts to the mechanic and have him do it, or I will have someone over my shoulder.

BTW, any GOOD mechanic, especially one that can handle imports, can do a routine tune-up like that. I would avoide the stealership as a cost-savings measure, alone.