2001 VW Beetle 1.9 TDI Diesel Torque Converter Unlocks

Hello all, I bought a 2001 Beetle with a 1.9 TDI Diesel engine, automatic transmission 200K miles. When sitting at a stoplight or even when just starting out in the morning the transmission won't engage. I have to bring the engine up to about 1600 RPM's then with a clunk it goes. After that it shifts fine. It even down shifts nicely when going up a hill. Now, if I am on the freeway with it and want to pass another car, it will unlock again and slip if I get on it to hard. It then will lock back in and go. Checked the transmission fluid and its full. (I still can't believe that can't put a stupid dip stick in new cars) I am trying to do all the possible cheap fixes first in hopes that it could be something easier then replacing the transmission.
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This transmission is notorious for failure unfortunately. If you get a P0730 code, that's a pretty grim diagnosis for this unit. But hey, you know, you never know. So get it checked out.