What condition is the fluid in? Does it look old? If brand new,maybe it was
just changed and the old fluid was really bad.From what you say,when
engaged, the trans will,work ok. First, I would start the engine and place
the trans in drive with the parking brake applied (very well). Keep it
running for about 45 minutes. If it will now engage freely in all the
gears, the valve body is probably dirty.You can probably drive it to the
emission test now.What I would do to fix this is first change the filter
and fluid to see the condition of the filter.At this point, you probably
have little to loose. With the pan off, the valve body can be easily
removed. I do mean easily. This can be swapped with another valve body that
is known to be in better condition.I think any water cooled engine valve
body will work.The valve body from another vw or audi 5000 will probably
also work.Check the archives.Know of any old vw's that are just sitting
around , unused? The valve body seems to be easily dissembled and cleaned
however I have never done this.Just lots of parts to keep track of is the
biggest part it seems. These steps beat the hel* out of dropping that
transaxel, and installing a new one by sept 1 will be a marathon.