Got the lens back yesterday. I'll have to shoot some images this week to test it, but initial playing with it in the house it seems to work fine. They replaced a lot of components. The repair paperwork shows:
repair autofocus operation
replace rubber ring
replace lens bayonet mount
replace rear lens protection
replace cam ring
replace diaphragm blade
replace VR unit
general check and clean
Actual cost was $420 plus shipping and tax.
The focus ring seems much stiffer and the VR unit makes more noise than it did before I sent it in. I don't know if that will change with some use. I've had this lens for years and absolutely love it.
My Nikon repair center is in Los Angeles. I needed my 17-55 2.8 repaired a few months ago and it ran around the same cost as yours and the same repairs. Mine is a $1400 lens and looked at it as maintenance.
I've heard from some others that this seems like the minimum charge one gets from Nikon for repairs. My initial estimate was $600 when I fill in their web form to create my service ticket, but the actual charge came in less. Seriously considered just spending the money on the latest 70-200 VR II, but glad I didn't. It saved me $1600!