>
>Questions:  Has this happened to anybody else, or does anybody know what it
>is?

Sounds like dirty oil, and since your fix worked......
Flush it again, get the rest of the crud out. I don't trust Slick 50 
snakeoil, Try using a Molyslip type molybdenum sulphite based additive is 
preferable IMHO, or nothing!
Concenus on Porschephiles list was that SWEPCO 201 gear oil is absolutely 
the best, from South West Petroleum Co, at $30-45 per gallon, damned 
expensive, but lets the synchros and shafts work smoothly.

>I'm told transmissions are pretty good on this bus.  Anybody else had to
>replace one?
>

I've got 100K miles on my '85, flushed/filled (Castrol) at 85K, feels A1
and 65K miles on an '87 Syncro that feels like I'm stirring mud with the 
gear shift, damned hard to get 1st etc. Time for Swepco!

>Is the old trans likely to last, 

I trust mine at 100K, they do need fluids changed at least once in their 
lives! 10 years on the same 3.5 litres is pretty good. I've towed 2000lbs. 
with that trans, when at 95K. YMMV.

>Also, on the steering rack.  When it started leaking, and not one of ten local
>VW shops would replace seals,

Buy a Bentley and see what you think, a non-VW shop should be able to do 
this also, try another quote? The VW procedure is always RE/RE (remove and 
replace), then send it back to be rebuilt. Your car spends less time hanging 
around, and everyone is happier, sort-of.

tim s.