Window stops 1cm before top - regulator??

[idower]

Hi
So i have a 1996 Passat and recently the drivers window has been acting up. It goes down no problem. When i put it up, it stops about 1cm before the top of the window frame and then makes a horrible grinding sound. Sounds like gears grinding.

If i grab the window with one hand on either side, i can pull it all the way to the top.

I pulled off the panel, and looked around but did not see anything obvious. I have a feeling that the issue is with the regulator, but i am looking for some other opinions to make sure.

Any thoughts?
thanks!!
Ian