I just had the 80,000 mile service done at a dealer, however no the car is not shifting correctly, it lurches when shifting down to lower gears and then last night it went not failsafe mode ( all the gears lite up in the display) and I have no power. I'm reluctant to believe its the transmission and I'm skeptical about bringing it back to the dealer now

 

An unfortunate update to my story. The car reported three faults today; 17118 Gear 4 incorrect ratio P0734-003 mechanical failure, 17114 - gear ratio monitoring incorrect gear ratio P0730-003 mechanical failure and 17195 Excessive Clutch slippage p0811 - 003 Mechanical failure - MIL ON.

So infact it does look like my transmission has gone bad, what a disappointment, considering the age (2004 passat wagon) and wear (85000 miles) on the car.