Sorry to resurrect an old thread, but it seems like I've got very similar issues to what's going on (except maybe the disintegrated sensor). I washed my engine bay as I live up in the mountains and it's extremely dusty up here (on a dirt road, too). I figured the plugs are waterproof, right? Well, after I did that, I ran the engine to let it heat up and dry things out and when I went to drive it, it wouldn't shift into 4th and apparently it was stuck in limp mode. I brought it to the the shop and had them read the codes and $400 later they reset the entire computer (reloaded the software) and I was off thinking things were ok.
Well, a couple days later, it did it again! So I went back and luckily the intermittent problem was no longer intermittent and the problem sensor was the one underneath the tranny mount (g68 I think).
I have two questions - the first one is would water really mess up the sensor?! It just seems kinda odd - I mean, is there even power going to the sensor? I'd figure it's a VR pickup and it's generating the very low voltage signal to the computer so I don't really get why it would get messed up. I'm thinking maybe water seeped into the sensor and damaged the internals or got into the plug and shorted things out there. I don't have the car nearby so unfortunately I don't have a way to look at the plugs, and when it was in front of me, I didn't even know what the problem was, hence my next question-
I am having the same problem with my 01 jetta. In the process of flushing the coolant i broke the upper water distribution block. That lil F up sprayed the tranny with water. After i got that all patched up and back together the tranny wont shift right. im getting 2 codes, 00281-003 vehicle speed sensor (G68), 00652-027 gear monitoring static- implausible signal. HELP!!!