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It could be a linkage problem. The older linkage setup is prone to failure. Unfortunately to remedy the problem a trained VAG tech should reset and repair this issue. It could be out of synch. Check your slave cylinder in front of the master cylinder and make sure the fluid levels are correct. To feed the level of the slave you must make sure the master is full and fill thru the master cyl. If the problem still persists then most likely its a clutch issue if the linkage is fine. VWvortex.com will have more on diagnosing this issue for the DIY's

Clutch and linkage maintenance.

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Q: 1999 standard vw beetle diesel and shifter will not go into gear at all any ideas?
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