I've had the problem twice, but never done the B-2. Opted for tranny swaps both times as I had a couple on hand.

Your assessment sounds accurate however. In one situation I had gradual flaring and in the other ..... boom! Just happened overnight.

__________________
DAILY DRIVERS:
'84 300DT 298k (Aubrey's)
'99.5 Jetta TDI IV 251k (Julie's)
'97 Jetta TDI 127k (Amber's)
'97 Jetta TDI 186k (Matt's)
'96 Passat TDI 237k (Don's
'84 300D 211k Mint (Arne- Undergoing Greasecar Conversion)

SOLD:
'82 240D 229k (Matt's - Converted-300DT w/ 4 speed