Joe,

The ball joint at the end of the linkage (beside the tranny) is known to be
wearing part.  It has plastic ball inside of aluminium cup.  In my case the
guarding boot was torn and the cup is full of sand.  I replaced only the cup
but I suggest you to replace both and new boot of course.  While you are
working with the linkage buy new rear and front bushings also they are
cheap.  If you still have trouble..replace plastic joint of shift lever.
..and make sure to readjust linkages if necessary (someone could have adjust
them with weared parts).

Juha Koivisto
'88 Vanagon (Caravelle) 1,6TD (old school bus with 9 seats)
TURKU, FINLAND