Facts: 1981 rabbit, 1.7L, FI, 4sp, w/a/c, manual steering.
Westmoreland PA built. Tie rods OK.

 For the past 5000 miles or so it appeared that when rounding a curve
at 30-40 mph in a right hand turn that the steering would "stick" or
"bind" at a point and then come back, almost as if the steering was
hung up and then loosen. This symptom would occur both during the
turning of the steering wheel past the binding point, and on the
return as one exited the curve and the vehicle started to head
straight down the road.  The steering also has the classic clunk when
turning the steering wheel at low speeds, i.e. backing up and turning
while backing. I seriously tried to adjust the steering adjustment as
per Bentley, but could not get a wrench on the locknut. I do not have
the special wrench to curve over the gearbox.  I have always had the
"feeling" or "impression" that my '81 rabbit steering wheel was harder
to turn at very low speeds (and while sitting still) than my '82, and
'83 rabbits, but this could be my imagination.  With both wheels
raised off the ground it turns extremely freely and one cannot detect
a "bind" or "sticking point".

 Also over time the steering wheel is no longer centered, with the
wheel being approx. 5-7 degrees off dead center. Yesterday while the
vehicle was being driven the following occurred: when turning the
steering wheel, there was a severe bind and the front wheels did not
turn, until the operator applied greater than normal force to the
steering wheel.  Now the steering wheel is about 50 degrees off of
center. As it was explained to my by the driver, the steering wheel
locked up and would only move by giving it a hard yank. After getting
one front wheel off the ground and turning the tire to simulate
turning, one could feel it lockup (or bind) at a point and then with a
little additional force, seem to break free. Oddly enough the tires
seem to move in unison, (in other words the tires are not pointing in
different directions).  I believe that the steering rack has slipped a
couple (or more) teeth over the pinion gear allowing the tires to turn
in unison, but the steering wheel is not in the normal straight up
position even though the front wheels may be pointed straight ahead.

I did not crawl under the vehicle last night, so it is possible that a
U-clamp failed. I merely assumed that it did not, as approximately one
month ago I was trying to make the adjustment on the gearbox as per
Bentley's instructions, and could not get a wrench on it.

 I read somewhere that one could leave the box attached to the
universal joint on the intermediate shaft, and remove the bolts
holding the gearbox to the firewall and this would allow enough
clearance to make the adjustment to the gearbox.

 My query is whether this will remedy the problem, or at least if
there is someone out there who has had a similar problem and found
this to be a fix, or is it replacement of steering rack time.

My question is: Does this mean that it is time to get a new rack, or
can the screw-and-locknut adjustment still be made to the gearbox to
avoid buying a new rack. Also is there a quick (and dirty) way to do
this without having the special wrench.