Probably a bad clutch.
SOURCE: Reverse gear has grinding noise...?
Have them flush the fluid out under warranty and put in new fluid, and have them bleed the clutch lines in case air is getting in there. Audi and VW claim lifetime transmission fluid but it's BS - I've changed relatively low mile fluid from these cars and it was horrendous. It's possible that the fluid itself is causing trouble, but it's more likely that it is a synchro problem. If it was a clutch issue, you should have problems with more than just reverse gear - a clutch simply engages and disengages the engine and transmission, regardless of which gear it is. The problem (if not fixed by fluid) is in the transmission, and being under warranty, don't accept another "suggestion" like they're giving you. Changing your clutch isn't gonna do it.
SOURCE: 1998 vw beetle codes p0411 and p1128
P0411 Secondary Air Injection System Incorrect Flow Detected
The 4mm inside diameter vaccuum hose gets pinched between the lower intake manifold and the secondary air pump housing, flattening it over time.
Here's a link to the steps to fix yourself if you are mechanically inclined...
http://forums.vwvortex.com/zerothread?id=1995162
P1128 Long Term Fuel Trim Is Too Lean
It is very likely this code is coming up because of the vacuum hose as well.
SOURCE: Vw polo maintains engine revs when foot is off the accelerator.
You need to check the cable the runs from the gas pedal to the engine, it might be rusty and need some drops of penetrating oil at the point it meets with the engine accelerator valve.
SOURCE: 98 vw beetle wont go in reverse
I have a 1998 and I just confronted the same problem. It seems to take like 1 gear in reserve and like 2 gear in 1 gear. Any thoughts? I don't really it should be the transmission since it still works going forward in 2 different gears. Thanks.
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