Volkswagen: New Beetle AC and Interior Fan Switch, fan selector, new beetle

Question
I purchased a used 98 Beetle Auto with the 2.0. Everything worked fine until
today when the interior AC fan would not work in the 1-2-3 position but AC
light switch lit up when pressed. When the fan selector is moved to position 4
the fan comes on but the AC switch light goes out and the the air from the vents
goes from cool to air temperature. It doesn't seem like a fuse issue, maybe a
relay?

Answer
possible brian...  turn the a/c on with the light for a/c on and open the hood.  Verify for me that both of the fans for the radiator are coming on.   Then flip the switch to position 4 and see if the fans are still on.   let me know what you find.
shad