Thats no Moon, Thats a space station!
Sorry to be the bearer of bad news but that means your gearbox is knackered
Had exactly the same symptoms with my S3 last year and the reason it happens is that the selector fork for whatever pair of gears yours being first and second like me breaks off as the rivet snaps. Its quite a common issue but an expensive one as basically you either need to find a good second hand gearbox to fit (which is what I did) or you can get yours fixed for about £200 but obviously box will need to come off whatever
Audi S3 8L BAM 225 2002 - Ming Blue : Silver Heated Leather, Armrest, RNS-E - Bose, Alloy Mirrors, 18" RSTT`s, Sunroof, Cruise, AutoDim Mirror & Usual S3 Extras.
Mods : Badger 5 Stg 2 Custom Map, FMIC, 3" DP & 200 Cell Cat, 007P, Jetex Filter & 80mm TIP & Heatshield, Complete LED Kit, Gen VW Aero Wipers, Full Powerflex Kit, R32 RARB, AP Shocks & Springs, 15mm Front & 20mm Rear Spacers, BB Uprated Actuator, N249 Delete & Catch Can, AP TVR 4Pot Brakes & DS2500`s, Sachs Carbon/Kevlar Clutch