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Hi Gareth, to limit your options as they stand, you have to keep the original reverse switch as it controls the rear diff freewheel.
I would suggest you check your existing rallye gearchange, mine is original rallye and is easily as good as a late mk4 change.

I would suggest you check everything is in top condition before trying other change setups, I’m not even sure the throws are exactly the same.

Have you checked the cables are easy to move when disconnected and the end connections are not worn? could posibly be seized or worn selectors in the box or even a dragging clutch, seized clutch release arm or leaking clutch hydraulics. these will all cause problems changing gear. changing the gearbox oil for sythetic can help a lot too.
the only mod I can suggest is fitting the weighted shift arm as fitted to the later G60 Passat, it makes the change a little slower but much smoother.

cheers Mike