For some reason these trannies are most difficult going into 2nd gear without issue.  Is 2nd gear working normally after being engaged or is it sometimes popping out? What about 4th? Check to make sure the shifter bracket on the transmission is mounted correctly. Counter intuitive but it goes in front of the mounting tab, not behind. If in the wrong place you can’t get full engagement on 2nd and 4th gear. 
Next would be to check the clutch action. In gear, can you lift the pedal almost half way before getting drive action? If not the clutch may not be fully disengaging due to a hydraulic problem. Can you go in/out of reverse without noise? What are you using for lubricant? Maybe a different gear oil will help. 

Dennis

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of David Boan
Sent: Monday, December 29, 2014 8:12 AM
To: vanagon@GERRY.VANAGON.COM
Subject: Rebuilt transaxle grinds

I have an '85 Westy and six months ago put in a GoWesty engine and got a rebuilt transaxle from German Transaxle at the same time.  My local shop installed both, and put in a new clutch and cooling system.  Second gear would grind and shift hard into second, so pulled the Trans and sent back to German Transaxle.  They replaced second and the syncro, but also said they were fine and the problem likely in the clutch or linkage.  Shop says the clutch and linkage are fine and say the problem is with the transaxle.  The problem continues and shop says they are done trying to fix it.  Very frustrating being in the middle.  

I am looking for a shop in the Chicago area that can look at the Trans and welcome any suggestions or any advice about the problem. 

Thanks
Dave
Wheaton, IL