Justin:

        Sounds like the price is right even with the tranny problem,
provided the rest of the power train is good and little rust.......

        A tranny from the auto wreckers will be about US $500 or 
so, if you can locate one. It will be a disadvantage if your tranny
has the 'mountain ratios' as the final ratio is 41:7, requiring the
motor to turn over 4000 rpm at 60 mph. Short engine life.

         I trust that you have the DM final drive ratios. That is, 38:7, 
I believe. If you have the following shift points printed with red 
dots on your speedo, then it probably is the DM ratios:

                1st  to 2nd:    ~19 mph  (~31 kph)
                2nd  to 3rd:    ~34 mph  (~55 kph)
                3rd   to 4th:    ~53 mph  (~85 kph)

If your shift points are significantly lower, you probably have the DZ
ratios.  Let me know, as this is an important consideration with this
kind of low power engine.   The code is also stamped on the bottom 
of the transmission case followed by numbers representing the date of 
manufacture.  Sometimes, there is a sticker under the dashboard
on the left side around the fuse panel which gives paint codes, and
engine code (CS for diesel, I think), and transmission code. It will
read DZ or DM for the transmission codes.

        I had a transaxle refuse to come out of gear periodically, and
was due to a bad pilot bearing.  If I shifted at the right speed, then
it would come out of gear easily.  Is your stuck in 4th permanently?

        Bear in mind that the diesel vanagon doesn't put out much
heat when not travelling at highway speeds, so it is an icebox unless
it has a diesel auxilliary heater. Does it have one?

Let me know

 gary meek
 sherwood park, alberta, canada

 82 Vanagon GL  1.6 litre turbo-diesel
 83 Quantum SW 1.6 litre turbo-diesel
 83 Audi  4000S  1.6 litre turbo-diesel