I need a new key and dont wanna pay the stealer £150

[unityn]

I have just purchased a 51 plate B5.5 Saloon TDI 130SE. It sadly only came with one key from the chap who said it only had 1 when he got it. I popped into the local VW emporium today and they said "yep thats £150 and you'll need 3 forms of ID plus the V5 (which of course its winging its way to the DVLA!) and then it'll be a 3 week wait, oh and we want the cash up front"

So needles to say I went on ebay and had a look, theres loads of blank keyfobs on the there. But being a full on Passat N00B I have a couple of questions:

1. Can these blank keys be cut and programmed to my car by someone other than the dealer?
2. Are there any pitfalls to watch out for when doing this?
3. Is there a better way?

Thanks in advance, and sorry for the questions on my 3rd post. I'll go post pics of the new motor now!