I did the same thing last season. The estimate got was $6 a foot so the $600 price you were quoted seem right.
I used this sonnebone NP1 caulk and the backer rod. There is also directions at the bottom of the page.
http://www.poolcenter.com/service_su...g_supplies.htm
Don't order from this company if you decide on going with Sonneborn, though. If you find a dealer, you can get a 30 case of caulk for $100 and the backer rod is about $12 for 120 feet.
I would use the backer rod, It is just easier.
I used duct tape and put it on both edges of the gap around the entire perimeter of the pool, to keep the edges clean. then just caulk and remove the tape once the caulk is in place and shaped.
Also color is important. White is very unforgiving if you are a little sloppy about your work. It will look like crap it you are not very neat. I used a gray color to match the cement and it blends very well.
I would do a practice section to get the hang of it. When it dries, you can pull it out with a knife if you don't like it.
This job was pretty labor intensive, all told between scraping out the foam, putting in the backer rod preping and caulking, I bet it took me 10 hours.
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