If you take the bearing cap off you'll see it's fairly thin.
The cable sticks through the square hole in the cap about an either inch or
less.
The clip keeps it from slipping back in, and loosing the drive.
It's common for it to be worn out.
I've peened the cap in the area of the square hole before, to make the hole
smaller, then file to proper shape with a very small file. 
It's sounding like the bearing cap end of your cable is damaged, or broken
off, or worn away. 
The part that engages the square hole is about an eighth inch long I
believe. 

-----Original Message-----
From: Thomas Pfrommer [mailto:pfrommer@phas.ubc.ca] 
Sent: Sunday, November 04, 2007 5:19 PM
To: Scott Daniel - Shazam
Cc: vanagon@GERRY.VANAGON.COM
Subject: Re: Speedometer cable -- where does square start

OK I think I should specify a bot more. yes it is 2WD.
 From your reply I assume I see right to the bearing cap. it is still 
kind of square, at least when I stick the speedocabel in from the 
outside, it fits, not really tight but it fits, if I push it in a bit 
further, it does not fit anymore. the question is where on the 
speedocable the connection to the cap is, and how much "meat on the cap 
is responsible for the square connection. After I removed the circlip 
and pulled the cable out, I see the outside end of the cap is square, 
how far in does this go and how can i tell if I should also replace this 
cap and not just the cable. It seems to me that on the cable only about 
1mm of material just after the larger diameter ring should be square, in 
other words, everything after this ring, should be square until the end? 
At my cable there is a bout 1 m which looks kind of round ...
Thanks
Thomas

Scott Daniel - Shazam wrote:
> Hi ~
> The cable is driven by the square hole in the bearing cap, the first thing
> you see after removing a hub cap.
> Perhaps you have a bearing cap without a square hole in it, installed on
> your driver's side front wheel, instead of one with a square hole like you
> should have. 
> I assume we're talking 2WD hear, and not syncro.  That's a whole other
> situation.
> Perhaps the square end ( wheel end, not speedo end ) is worn 'round' where
> it should still be square and able to be driven by the square hole in the
> bearing cap.  
> Scott
> www.turbovans.com 
> -----Original Message-----
> From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of
> Thomas Pfrommer
> Sent: Sunday, November 04, 2007 2:43 PM
> To: vanagon@GERRY.VANAGON.COM
> Subject: Speedometer cable -- where does square start
>
> Hi list,
> after reading a lot of threads regarding speedometer cables, it is still
> unclear to me where exactly the square part begins and where the
> counterpart in the hub is. I just pulled my speedocable, as it did not
> work any more, disconnected it first from the speedo and noticed it is
> the cable or the hub, as it did not turn while driving, just vibrated a
> bit. it is not broken, can turn it now after removing. Now there is the
> square part where the circlip groove is, then there is about 1mm more
> square material, then it looks to me about 1mm rounded square and then a
> 1mm wide ring with a bit larger diameter comes. is just the part before
> this ring responsible for the connection to the hub? If this cable is
> worn, how certain is it that the hub inner square is NOT worn? Is it
> necessary to pull somehow (How?) the hub in order to see? Or does the
> outer part of the hub (seems to me square as well, even though small
> worn corners appear as well just at the shell) also tale part in the
> responsibility of turning the cable?
> Poouuhh, I hope these question are at least half way clear, and thanks
> already in advance.
>
> I will order from GoWesty these parts, in addition i wanted to get some
> cupholders (and belts), where is the best place on the dash to put these
> holders? is the 3-4cm wide part just under the dash enough space to
> install these foldable cubholders?
> Thanks again
>
> Cheers
> Thomas
>