yeah that is what is happening for sure...when I drove it daily the water would "evaporate" due to the heat...so I guess I will try the radseal....if not I will need a new automatic transmission box...which is more than the car is worth....(I have had no luck finding a scrap automatic golf for parts...)
Will give it a go with sealant or just try the pepper thing as it appears to be the least harmful...
Of course if it goes into the transmission box...then bye bye car....

This problem was probably the reason that the car was sold to me three years ago...
Initially the transmission fluid was low and we replaced it...but there was no evidence of a leak in the the sump or anywhere else...car seemed to run fine for half a year...but the transmission became less responsive as time went on....
replaced transmission fluid again a year later as the level went down slightly....
then last winter the car smoked upon startup in the winter....totally crap...where is it coming from?
I got the engine and water system pressure tested by a forum member here and he stated there are no leaks...this is when the car is warm....(after 10 miles of driving)
Now this year the coolant went clear...and after the car stood for 6 weeks without me driving it the evidence of the oil leak on the transmission coolant block is now evident..
So I have a small leak somewhere in the system that disappears when the car warms up....joy oh joy...
But I believe this was the reason my car used to smoke in the winter and it has survived for almost a year in this state.....as it was burning off the excess oil....or water or whatever the hell it was....
So there is a leak of transmission oil into the coolant system and maybe a coolant leak as well...
It appears the car is on it's own deathbed as it will cost more than I can spend to save it.....
So advice please...if i try radseal will if kill the car or is it a possible go?
Guess what I am afraid of is that the excess water now at least has a way of burning off...if I trap the excess water in the transmission box...then when it expands it will the box??...and end of tranny...perhaps I should drive the car and burn all the excess water let it cool down somewhat and then stick the radseal in???but then if the leak is only evident when the car is stone cold it wont seal any crack....unless I put it in when it is stone cold (which may not allow it to work...) and thus catch 22....

I am in a bit of a problem here...unless someone has an 01M automatic tranny box and cooler lying around and feels generous...only in fantasy land i think....
I will always remember VW service center telling me that these transmissions are indestructible and never need any maintenance...hmmm...
The joys of owning a VW.....

learned more about how they work than I ever imagined...
