If you've got a 300 TDi then make sure it's the pump before changing it as there are a few other problems that make the same noise and most are coming from the drive belt. If you are spraying WD40 onto the water pump (not the pulley or belt) then you could be right. the good news is that a new pump is only about £35.
The drive belt will "squeel" if the tensioner pulley is slightly out of line, this puts a glaze on the flat suface of the belt and this makes a noise as it straightens up over the PAS pump.
If you look down the line of the belt, from the battery side, it should be straight - if the belt is deflected at all then it could be this that's causing the noise. WD40 on the flat surface of the belt will stop the noise.
A quick sort is just to change the belt and the noise should stop. The best one for this is to put a 1-2mm spacer behind the body of the tensioner (where it meets the front of the engine block) to bring it back in line.
The bearings in the drive belt tensioner also make a nasty squeel when they are on thier way out, WD40 into the bearings should stop this but it needs changing! Same goes for the PAS pump.