For the needle to peg is normal. (we would freak if it didn't peg)
You should've noticed extra acceleration around 2k rpm - that is when the turbo starts to do its thing.
You might want to post addtl. questions in the diesel forum.

__________________
It is a truism that almost any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so. Robert A. Heinlein


09 Jetta TDI
1985 300D