yep, that is part of the CV axle itself and unlike the B5 & B5.5s which bolt up these have a little spring clip which snaps into a corresponding groove in the transaxle drive itself. This is similar to all other makes like GM etc. They are a bitch, and if you look at your piece still in the transmission you will notice little (real small) upset/grooves about midway on it,these are for the VW tool (which no one has of course) to grip, with that said, what needs t be done is to preload that piece outward putting pressure on the inner snap ring....... then with some sort of impact "reverse" wacked to pop it out of the groove......I believe Advance Auto, O'Reillys, Auto Zone one of those three rents a CV/Axle removal kit...probabaly all the same kit,that is where I would start.........Here are some things you need to be really aware of ,be careful where you pry on on differential/tranny case you can easily pop a hole in it in a thin diecast area, next before you take it out (and you will get it out) take a measurement of its location/distance from the housing itself, drill bit/pencil/pice of wood, off hand I want to say about 3/8 of an inch......the reason being many people push the axle in and do not get in far enough for that f'in pita snap ring to engage which becomes a disaster in waiting....... I anticipate doing mine on my 08 in spring or sooner so let me know how it works out for you, I did inquire at Advance the have a kit but not sure if all the pieces parts include in it will do the job......hang in there and keep me posted ,regards Chief