Thats definitely a mechanical problem then. Its saying that the rpm going in does not match the expected rpm coming out. Either the first clutch drum has exploded, the bearing has disintegrated, or the o-ring is split.
FWIW, if you look in markiii's bumper wanted thread, there is a link to an ebay ad for someone breaking a crystal blue FL2 S8. I believe he still has the gearbox from that and his prices seem fairly cheap, although he's not interested in shipping so you'd have to get to Manchester to collect it.
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