When driving the gears don't catch on and it just revs with no real power. Now the check engine light is on.

Have the fluid level checked... needs to be done at a specific
temperature & special equipment/fluid is needed to fill to correct
level... so you might want to take it to a VW Specialty shop to
have them check it out.

The Transmission Control Unit can be checked for fault codes as well.

Thomas

so what is stated in the answer above it should be scanned andcan be an internal problem

Thanks for the info! I'll post the engine code once I get a friend to scan it today.

If you guys are still around, the engine code was P0733. Also my mechanic had to put about 1 quart of trans fluid in but now the car shifts fine. But he said to watch it and see how it goes.

yep that's what to do.... the 733 is a trans code so it was porbably low on fluid.

Alright! I do appreciate the advice. :)

If you guys are still around, same problem happened but it disappears once the engine gets to temp and the transmission heats up too. However p0732 was thrown out by the MIL. Any thoughts?

that code is a the wrong gear ratio which cold mean a valve body problem or solenoid have a trans guy look at this as i think you have a seal or clutch gone in it.

. Some things to note: Trans computer good. No electrical problems but burnt transmission fluid (or so says mechanic).Says probably mechanical -> rebuild transmission $2500. Does this sound about right? Sorry for the long delays.

i would imagine so, you can always check around to get a better price. burnt fluid is never good in a trans, you can smell it and it will look eithr brown or black. it should be red.