It's the main seal leaking onto the clutch assembly. I went over to the car wash yesterday and degreased the entire engine, tranny, etc. After spraying everything down with high pressure and got everything spanking clean there was very little vibration when pulling away from a dead stop. I guess the high pressure water flushed the oil out of the area and it worked great.
Later when I went for another cruise it started back slightly then got worse and worse the further I drove. Every time I took off from a red light it got a little worse & a little worse.
I'm going to change out the rear main seal as suggested. This should solve one of the problems.
As far as the 3rd gear goes, I sprayed some white lithium grease on the assembly in the engine compartment and she seemed to do much better. We rolled about 15 miles with out a problem. I'm hoping that this solved the problem but then again, having wrenched on 60's model VW for 20 years I realize that this seemed to be WAY TOO EASY OF A FIX to have solved the problem. :0)
I'll keep you updated as time rolls on...........
