Joel writes-

<<  I don't want to drop this thing, any help?  >>

Thanks Pat, missed this one........

Grinding 2nd?  Typical for 091-1 transaxles that have been run
on GL5 for any long term mileage.  Also, with 142+K on the odo
its on what I would consider borrowed time anyway.

Try this:  Drain the GL4 Dinobones and refill with ATF.  Then,
with the back wheels off the ground let the engine idle and place
the trans in 3rd.  Let the ATF slosh around a bit and then engage
all the other gears.  Let the trans whirr around for a fat minute or
more in each gear.  Lower the rear and jack up the front.  Drain
the ATF (you'll leave about 3/4 of a quart in there.  Poor drainage
design by VW) and refill with a synthetic GL4 such as Redline
MT90.  Jack up the rear and do the trans wash boogie once
more.  Drain the ATF/GL4 out again and refill it again.  This is
probably the best you can do to clean out the internals short
of dropping the gearbox out and tearing it down.