I do not know VWs like a do a GM car but my friend and I were getting his 66 bug running for the first time since 78 and it worked. The car is running like a top.
Now here is my question, we have the bug on jack stands and all 4 tires off. We tried putting it in all the gears and it seems to work great, push in the clutch and it stops the wheels. But when we have the car out of gear the wheel still spins. So is this normal or do you think the transaxle is not fully out of gear? Only if the clutch or parking brake on does the wheel stop spinning.
Well, it takes slightly more rotational friction for the car to run itself down the road vs. spinning unloaded axles. But yes, VWs have been known to creep slightly when idling in neutral.