I had a similar issue on another 020 trans car (98 GTI)It felt like I broke a clutch cable, but I replaced the clutch cable, and it still did the same thing.Mine ended up being the "Clutch release arm" seen here:It looked fine, but had a hairline fracture that only showed when major force was applied.If you pull up on the clutch lever at the trans, without the cable attachedyou should be able to feel if the button fell out.Just one more thing to look for, but it is an easy 20 minute repair!-Brad