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Hi, Had what seems to be a similar problem. As yuo turn the wheel when standing still gives a clunky feel with a mechanical knock. If your's is the same it's bad news, Audi just fitted a new steering rack to mine, thankfully under warranty as there was a crack in the sterring rack...

Hi Guys Developed a problem on my 07 B7 saloon on the steering especially at low speed before the slow speed lightness stiffens up! As you turn the wheel you get a 'knock' which repeats the more you turn, tends to get worse as it warms up. I haven't checked the fluid level yet - tomorrow...