Thanks to pfredricks for the solution to this problem.
We bought a 2002 Jetta GLS TDI a month ago (black, gray cloth interior, hecho en Mexico) and noticed the crayon smell right away. It affects different people differently; the previous owner had the car for 10 years and it wasn't an issue for him, but it's obnoxious and nauseating and headache-inducing for my wife and me. We found this thread and decided to do the under-carpet soundproofing mat removal project.
I wanted to get all of it out, which is hard, no matter how you do it. When the car's interior is built, this is the first thing that goes in; everything else is on top of it. The soundproofing mat is basically in 3 pieces. The rearmost piece is under the carpet under the front seats and it is easy to remove after you remove the seats and the center console and the carpet:
The middle piece is in the driver and front passenger footwell, and is also pretty easy to remove:
The third piece is up against the firewall, behind the dash, and this is the hard part. This picture shows just a fraction of it. It extends up to the glareshield and across to the passenger side door:
The "right" way to do it is completely dismantle the dash and remove everything from the firewall to get to the mat. Instead, I used a needlenose visegrip and tore it out, one bite at a time. The whole project took a full weekend from start to finish.
I replaced the stinking mat with RAAMmat
http://www.raamaudio.com/categories/Mat-and-Foam-Products/ (37.5 sq ft was plenty). Maybe a little bit noisier than before, but it was never a particularly quiet car.
Also cleaned the carpet with baking soda, vinegar, and a little hydrogen peroxide. The bottom layer of the carpet itself is somewhat absorbent and had been sitting right on the soundproofing mat for 10 years. Even getting rid of the mat and cleaning the carpet, a little residual crayon smell remains. But only a little. Much, much better than before.
Thanks again pfredricks.
--GG