Transmission Costs???

I've got a '97 Jetta GL with 130K mileage and automatic transmission. The transmission went out tonight and I just had it towed to the house.

The tow truck driver said it was the transmission because of the following three reasons:

1. The car would go into gear, but made a grinding sound when placed in Park.

2. None of the gears would engage when shifted.

3. When he lifted the car onto the flat bed, the car was in Park and the wheels rolled freely.

OK...Can there be any other problem? A mechanic friend did mention the drive belt, but he has NOT seen the car.

What is an approximate cost to fix/replace the transmission on this type of vehicle?

Thanks!

You can adjust the cable yourself. It seems like the cable is not adjusted (hence the car shift lever in park and the wheels moving?)