H/L ratio.

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Flat out in top gear in low would be 35 ish mph if your lucky. Low is for off road and towing VERY heavy loads only. If you are struggling on hills on road you should use the noral gears. It's possible you might need a service to pick up the performance a bit but remember it's not a rocket ship.
If your low high selector is floppy that's fine, as when you haven't selected a ratio then you won't have any drive. Neutral in any gear box in any car means you won't have drive.
 
Do you have an owners manual for your Motor?

Cheers
+1. If not get one, ASAP!!! and then then RTFM.

Also.... your favourite search engine will show you how the drivetrain works.

here's a vid on you tube, which gives very basic info....



( and yes, this is for 200Tdi D1, but the principals are the same )

here's another, 300TDi D1 this time...

 
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