Would you consider shipping in order to fix it or are you trying to keep it local? Those price quotes are a 1/4 of that lenses total value now thats a shame..

Give this guy a try. I've been very happy through the years. I used to send all my Hasselblads to him. He has worked on my D200.

http://www.pho-tech.net/

Sounds like it is time to bite the bullet and pay up with so much wrong with the lens. Have you have had a lot of use out of the lens? The grinding AF may be what is creating the dust. Can you 'see' the coating problem in your images? If not you could ask for two prices - one to leave that as is, and one to replace the front group.

I couldn't find a post to address this. My 17-35mm f/2.8 "got dust" in it and wont zoom below 28mm. I called the local Nikon center and was told there are 3 flat repair rates for this lens ($212, $349, or $472) and that they go through and repair everything and not just the one problem. Does this mean I am screwed if I don't want the grinding noise in the AF to be repaired or the front element replaced (a little lens coating came up)?

Do you have any alternate suggestions?