Writing this so it can help somebody else. I had to replace the motor. First of all, OBDeleven Bluetooth module was able to confirm the failure of the motor. Pretty cool gadget. It also told me the date the problem started to happened...
Now for the fun part, it will cost about 200$ for the parts. 150$ for the motor and 50$ for lever kit. It may be possible to reuse the old lever but it did not want to take any chance because it looks slightly different and I really don't want to do this again.... The part has been replaced. The new part number for the motor is 1k0907511Q. The lever kit is 1k0898002B. You may be able to save a couple of bucks if you shop online but with shipping it think you may break even. You may be able to replace the motor yourself in the actuator casing as you can find the part online but.... again it is not something I want to redo so I did not want to risk it plus shipping delay....
Also since I wanted the part now, I had to get it at a VW dealer. None of the Audi dealers had it in my area (California) while the first 2 VW dealer I called had it in stock. ECS tuning carry the parts too.
Now that being said, you have to remove a lots of stuff to get access to it... Climate control, central console etc... I followed the guide at
http://audiretrofit.quinlivan.net/rs4startbutton
Disclaimer: not sure if the way I did it is by the book. It was very challenging to do it from underneath the driver side. You may be able to do it by removing the dash but don't know about that....
You need to remove the central console(between seat) to be able to remove a metal stud/bar. After it is removed, you will have enough room to work.(barely)....
It is easily a 5 hours job (Start-finish) for somebody that has never done it. Removing central console takes time so you do not break anything.
Also, one thing I noticed while testing is that when the defroster vent position is ON on the climate control, it will close the flap when you stop the car and open again when you start the car. I'm suspecting that this would add more wear. Mine was always on pretty much all the time so that could explain the wear. I tested the old motor and it had dead spot where it was not turning.
You can see the picture attached.
The top one is the actuator/motor for defroster flap.
The Metal Stud in the way onced removed..
The picture below