Difficulty in engaging reverse

The shifter probably needs adjustment. I don't think it's related to the puddle. If you look on top of the transmission, you'll see cables. Adjust the cables and it'll adjust the movement. It could end up even better then it originally was. If you adjust too far, it'll end up going into reverse when you select first, so watch out.

You could try greasing the shifter linkage. I don't think water got in the cable and rusted it. Also try adjusting the shifter linkage. The Bentley has the procedure in it.

Thanks

Thanks for the responses! Is it common for Beetles to get out of adjustment so quickly?
I haven't needed to do anything on this car yet so have had no need of the manual until now. Does anyone buy factory repair and maintenance manuals for VWs?
Any recommended sources to buy manuals?

Thanks again
Jonathan

http://www.bentleypublishers.com/product.htm?code=vb07

The service manual. It uses the same engine as the Golf. I don't suggest getting the CD version since they have retarded rules on how many times you can install it. Because of this, don't buy a used CD. No other online source ie., illegal source for the manual. Some copies on ebay are scanned .pdfs of the bentley, I don't know how complete they are but the .pdfs I've seen of some manuals are incomplete and don't have the TDI engine section. I don't have the New Beetle one so I can't say.

The Haynes won't cut it, the Bentley is much more comprehensive.

Unusual for it to go out of alignment so early. The bushings wear down and the cables slightly stretch, if it wasn't just right when new it's possible that it has aged and gotten just barely out of alignment. 2nd the Bentley, Haynes is not so great for this.