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Sorry to hear of your transmission issue.
I've just (a month or so ago) spent $5000 on my non-dsg transmission, according to the specialists a very common problem is with the valve body which was the problem with mine, now it drives beautifully.
I was having the same idea about trading the car in, but I'd only get $7000 and that's if the transmission was working properly, my choice was clear, spend $5000 
I could have tried to sell it privately, but anyone who test drove it would soon realise something was wrong.
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Thanks for the replies guys. I owe about $4k more on the car than it's worth (even without the Trans issues) so it looks like the more economical option is to have it sorted out. My mechanic suggested doign the loom first and seeing if the symptoms go away.
I'm off to Germany in two weeks until January so it can wait until after that.
I love my Golf, really disappointed to hear all these incessant reliability problems and upset that it looks like I need a new trans after less than 90,000ks
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