a symptom of a broken timing belt.. is it's broke.
I was lucky to change mine at 100k, but it was very glazed, very hard. Pop the cover off and take gander, if it's shinier than your tires, or is dryrotting.. change it immediantly, if not.. change it immediantly. Nothing sucks more than your car not working and it's all your fault of not doing maintence on time.
The belts and tensioner system on this car suck, horrible design, VW made some bad decisions on maintence intervals.. t-belt @ 105k, manual trans fluid is a "lifetime" fluid(LOL).
Parts alone for a tbelt is about 200-250, labor is expensive depending where you go or free if you do it yourself.
It's not difficult to do, just make sure everything is timed right with the new belt. There is a HOW-TO thread somewhere that has a good bit of info