I had the same problem with my headlight adjustors when I first bought my car, upon further investigation the adjuster links between the light and the electric adjustment motor had come adrift.
If not them just set the dial for 1 (Driver plus no luggage?) and get a garage to adjust the headlights in that position to 'calibrate' the dash adjuster.
Bear in mind there's 2 adjusters on the top of each headlamp, one for up/down movement and one for left/right.
Has any one changed there Full Beam or Fog light bulbs to match the HIDS.?
07 2.0T SLine SE V2 Quattro, Full Milltek with hi-flow sports cat, APR Stage 2+ 280BHP/325lb/ft, APR HPFP, K&N panel, S4 alloys, Spacers, Black Optics, Eibachs, RS4 grill and fogs, Fog tints, RS4 ARB, RS4 Gearstick, LCR splitter, Black Calipers, Drilled discs, Debadged, Colour DIS, Bose, Adaptive Xenons/DRL, Black/Silver Audi Exclusive leather, Audi Carbon inlays, carbon difuser/B pillars, RNS-E+/Bluetooth, Cruise, Int/ext light packs, Rain/light sensors, mudflaps, LED plate/side/boot/interior