V6 Passat with 4Motion is a rather expensive car. I wouldn’t play around with different ATFs. I think that using OEM fluid would be (and pretty much it is always the case) a best way to do a flush. $25 per quart is a rip-off. You might want to ask dealer if they would accept if you bring OEM fluid from another source. If yes, there are places online you can buy VW fluid from much cheaper (I think around $11-14/quart). If they wouldn't accept OEM fluid from you or will want to deny any warranty requests in this case I suggest go find another dealer. Independent tranny shops might be a good alternative. They know transmissions pretty well, but I'm not sure about your particular one. You probably will be able to safe some money as well.
Since you’re going to do a full service don't try to save a few dollars - change ATF filter and probably gasket (depending on its condition) as well. You might want to add Lubegard Red just as an extra assurance, but that's totally optional.
If you have close to or above 30k miles I think that changing gear lube (use only synthetic) in front and rear differential is a must (if it hasn't been changed before). In this case you'll be able to keep gear oil for at least another 60k miles without any concerns. This will also help to keep fuel economy at its maximum. I don’t know about transfer case in this car but if you change it now you can keep it for a life-fill. I probably shouldn't mention changing fuel and checking air filters.
Good luck on your service. I'd appreciate if you let us know what service you did and how much you paid for it (just for reference purpose).
Regards,
[ June 10, 2004, 09:49 PM: Message edited by: Titanium_Alloy ]