Clutch slipping?
 

Not exactly sure what it is, but seems like my clutch might be going. I was driving through Holland Tunnel today in 3rd at about 2000rpm and stepped on the throttle about half way down. The car started pulling strong till about 4500rpm but then the rpm started rising quick but the car kept accelerating at the same pace I was holding the throttle steady. I tried it again shortly after, and same result. Doesn't seem to happen below 3rd gear though. I can go WOT through 1st and 2nd with strong acceleration. So is the clutch gone? Or could it be a problem with the pressure plate? I'm the second owner of the TL, it's got 65k on it and I bought it with 43k on the dial still with the original clutch. One thing that might help: I've recently done quite a bit of driving in the city in stop and go traffic but I do my best not to ride the clutch. However I've noticed a bit of vibration coming off the clutch pedal when it engages as the car starts moving from a standstill in 1st

Another question: my clutch engages when the pedal is almost all the way at the top (let go), is that normal? In order to fully disengage the clutch, I only need the press the pedal 1/3 of the way at most. Not sure how it is in other MT tl's that's why I ask.

Sounds like it. It makes sense that it slips in higher gears since the clutch has to work harder. The engine is overcoming the clamping friction of the clutch. It shouldnt slip in the lower gears since it's "easier" to move the car.