Transmission dead? probably not clutch, 89 90q

[Nathan D. Engelbert]

HELP!

Car is 89 90q with 192k miles.

While driving through the UP of Michigan this past wednesday, my car jolted
a couple of times (as if someone were tapping the brake), then I lost power
about 1/4 mile later.  The engine spun free, but my transmission was shifted
into 5th.  I was wondering if I had lost a gear, so I shifted to 4th then
3rd, still free revving engine.  I coasted into a golf course parking lot,
called towing service, and had my car towed to some mom and pop garage in
Peshtigo WI that probably had seen about 2 audis before in their existence.
I explained that I thought my clutch had gone out, ordered a new one from
blau since the guy wasn't able to get one until this coming tuesday.  Well,
they got a chance to look at it today, told me that the clutch is engaging
fine, and that there's something wrong with my transmission.

They started the car, shifted into gear, and said that there's a grinding
noise when they release the clutch pedal.   Kinda sounds like something is
trying to spin, but there's something at the bottom getting in the way and
getting knocked around.  The repair shop would rather not work on my car as
they've never done this kind of work on an audi before. SO, I get to drive a
trailer up there from Chicago, where I am now, and get my car.

My questions are:  any ideas what is wrong (I thought these transmissions
were "bullettproof")?  Any BTDT on problems similar to this?  Am I going to
need a new transmission?  Are there any good shops to take my car to in the
chicagoland area?   Anyone have a spare transmission in good shape that
they're willing to part with (if that is truly the problem)?  Should I go
ahead and replace the clutch while the transmission is being worked on?
Will someone trade me a new S4 Avant straight up so that this will all go
away?

TIA for all possible help, I NEED it.

Nathan Engelbert
89 90q