5k quattro trans failure????????

[JordanVw@aol.com]

looking at a '87 5k TQ.
the car has NO reverse.
and the forward gears have too much clutch travel before they engage. (ie.
clutch pedal is nearly all the way up before engaging - like i was starting
out in 3rd, when actually in 1st) 
reverse does not engage at all, but grinds, and then there is a loud metallic
slamming noise.  

has anyone ever experienced this???  ive always thought quattro trannys were
close to indestructible...  
any ideas?

thanks
chris
looking at basket case '87 5k TQW