VW Jetta VR6 Auto Transmission issue?

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I have a 2001 VW Jetta VR6 with Automatic Transmission. When I am driving, it will start off ok in first gear. Then when upshifting from 2nd to 3rd and from 3rd to 4th, there is a small transition through neutral. During this time, the engine will Rev up a few hundred RPM and the car will jump into the next gear. Often it might cause a *thud* or Jerk when jumping/shifting up. This usually happens when cold ... usually mornings. Has anyone else experienced this issue? If so, what did you apply as a solution? What did it cost you? I am the second owner of the car and the car has done 57000 miles. I believe the VW warrenty is only 5yr/50k for second owners. The dealer told me it is a TCM (Transmission Control Module) issue. I am not convinced. A: Quite unusual on a vw... You have leaking internal clutch seal(s), and the only option is an overhaul which is quite expensive - $2000 or so, maybe more if there is damage to hard parts. Everything on these cars is unreasonably expensive as you ... more
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