Sorry to say this is a verry common problem. Sounds like the d/r clutch pack has burnt out either from low oil, over heating or just old piston seals. 3rd gear will also be slipping or will be very soon.
This auto would need a rebuild along with the torque converter and diff as the diff has seals wich separate the auto and diff oils. I would suggest to change the automatic heat exchange for a air to fluid trans cooler with a thermostat switch and fan.
Aaron
AARON'S SPEED SHIFT AUTOS
Specialising in Vw automatic transmissions, differentials and torque converters
Stock or modified to suit your application (street, drag, off road)
Ph 0402 233 027
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AARON'S SPEED SHIFT AUTOS
Specialising in Vw automatic transmissions, differentials and torque converters
Stock or modified to suit your application (street, drag, off road)
Ph 0402 233 027