Nate -- if you get fed up with trying to fix it, let me know. I have a buddy in the area who needs a beater with a heater. He's moving from Withee to Chippewa and could use a commuter.

As for your problem, I can't add much. I'd definitely soak the cables in penetrating oil, and yes, jack her up and beat on the drums.

Good luck!

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1992 300D 2.5T
1980 Euro 300D (sadly, sold)
1998 Jetta TDI, 132K "Rudy"
1974 Triumph TR6
1999 Saab 9-5 wagon (wife's)