I have a 1997 TSI GC the trans stopped shifting from 2 to 3rd. I had noticed sometimes I had to let off the throttle to help it shift but most of the time it worked ok. Finally one morning it would not shift out of 2nd. The transmission shop said the selenoid and governers were clogged and they had error codes. He said that he could replace them but they might clog up again the next day. He said I should rebuild the transmission for around $2500, I don't want to spend that much on something I only paid $4000 for. They said they could replace the governer and seanoid for around $500, but it might not work. Are the just trying to sell me a rebuild?

you probably have worn out seals in the trans.its pretty common

I was quoted $1,200 for a rebuild on my 96. I would shop around or if you can install it yourself I have seen them go on Ebay pretty cheap.

I have called around and wrecking yards want 400-600 for used ones with some warranty.

Good Luck.