Your clutch is definitely toast, I replaced mine about a year and a half ago:
Clutch and pressure plate was $420 through a mechanic, hence cost and not list, over $500 list.
Release bearing was $80 cost, over $100 list.
I didn't opt for changing the fly wheel, but I was lucky, sometimes this needs to be done and it is the most expensive at about $600 cost.
I did all the work myself, but in the book it gives 7 hours for labour, so if you are taking it to a garage, you are looking at about $700 bucks for labour. So in total you are looking at well over 2000 grand.
The clutch is actually really easy to change, if you are mechanical. I used the Hayes manual and went through step by step and actaully had it changed in about 5 hours. The tranny is quite light as well, as I was able to lift it in and out by hand, just a tip, you do not have to take out the drive shafts to get the tranny out or in, the book suggests taking them out, but you can work around them. And if you haven't done any work on your jetta before you will need to purchase a 12 point torx set, for the special bolts in the drive axle and the bolts that hold on the pressure plate. Good luck...