It'll depend a lot on how quickly you need to sell the car. I own a 2003 5 spd wagon and I can tell you right now there's no way I'd pay $6-8K for one right now.
Realistically, the buyer-market for these cars is dwindling. For the average car buyer, this is a 12 year old used car. Even worse, it's a 12 year old used German car with a reputation (justified or not) for being unreliable. Yes, it gets great fuel mileage, but right now with $1.85 RUG (and $2.50 for diesel), that's not a big selling point. As mentioned, if you can afford to wait until fuel prices recover, you'll get more for the car. However, that may be a year or more the way things look at the moment.
I know of a number of car enthusiasts who love the idea of a small, diesel wagon, but won't touch a VAG product with a 10 feet pole. So the market is limited to those of us who know these cars. It's tough. I myself am finally resigning to the fact my car isn't worth that much anymore (329K miles and more than a few dings - might be worth $3K) so it's time to drop the full insurance coverage. Yours has halfthe miles and sounds like it's in better condition, so I'd agree it's worth more than mine, but finding that buyer may take time.