age old question how much can you spend?
Fast28 on audifans.net supercharger his himself, then switched to a 2.8 30v lump ( a fairly straight forward changeover) and got a used PES kit.
PP work is going to be expensive but may yield some gains, shrick still make cams as well, a chip is a waste of time as it will only ever advance the timing on a lambda controlled car, so only really worthwhile if you have put road cams in it.
i can say boring up the Throttle Body (primary aperture is TINY, and removing MAF screen, assume you have a 471A maf (the 3" not the 2.5") can also be bored up as well, then connect all this with a 3" samco will make a big difference to how responsive this car is as its a rather lazy lump. gains hard to measure but the 60 time will be dropped by a second or so and the throttle response is a LOT better, really notable on autos.
HOWEVER, the 2.8 is a VERY over engineered engine. is it a quattro? auto?
I had a AAH coupe quattro for 3 years, great car. sold it for what i bought it for 3 years later. Not many cars fall in that bracket. Restoration again i would point you towards audifans.net this site is very good but is more orientated towards the B5-upwards generation. I have two of those now!