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I have an '02 Audi A4 w/ 3.0 V6 Quattro. My brakes have been squeaking when I'm going 30-40 mph and I hit bumps in the road. If I apply the brakes even the smallest bit, they don't make the noise.

I asked my dealer to take a look at it. They're saying that the rotors are corroded, but that otherwise, the brakes look ok. They're quoting me about $1,000 to replace all of them.

The questions are...
1) Does this seem like a reasonable diagnosis of the problem?
2) How does this price sound? What should I expect to pay for this if I go to someone else?
3) When I shop around, do I need to look for a specific brand of rotors or anything?

Thanks!