One problem related to transmission noise has been reported for the 2004 Volkswagen Beetle. The most recently reported issues are listed below.
On August 22, 2007 the dsg 6 speed automatic transmission on my 2004 tdi vw Beetle started to disintegrate. Small pieces of coil springs and metal fragments fell onto the belly pan and a grinding noise could be heard. From research I have done, this seems to be a frequent problem with vw's with this type of transmission.