Well, that sounds like clutch failure then, I have had that before too ... worth checking the selector still. Unless the clutch plate has gone, probably either of the clutch cylinders (master or slave), especially if there is fluid underneath the car.
Both are do-able yourself, but it is a pain, and I'd suggest getting it towed to a VW mech. At least it will be a lot cheaper than replacing the gearbox.
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