Tranny slips in first gear, once in awhile won't shift into drive ( its automatic ) Tranny was serviced but no problems were found...looking for ideas ...HELP.... does a 94 have a speed sensor chip?????

I'll assume the fluid level is correct. I don't believe the 096 transaxle you have uses the speed sensor for shifting purposes. It has a speed sensor on the differential side, but it is for speedometer drive purposes. The system does have a trans module that can be scanned, unfortunately you must use a VW or VAG-COM scanner to access it.

Do you have any ideas what it might be then? Were all out of ideas...

Faulty 1st-3rd apply clutch or reverse brake clutch.