I failed to mention that the tranny makes a rough noise as I let the clutch out... kind like a fast "shugga shugga shugga", and I can feel a vibration through the clutch pedal. I figure the TO bearing is on the way out.
3. The 87 tranny will fit if it has 100mm CV flanges. The speed sensor may not work. I don't think the A3 trannys use a gear to drive the sensor, they just have a reluctor wheel on the pinion shaft. I could be wrong though.