I'm quite sure that there is actually a 2.7 bi-turbo engine lying under that bonet
@Dazzeroo: did you release the clutch all at once from fully pressed ? The first start i had in my S3 was from 4k rpm and the clutch half pressed, and resulted in clutch slipping all the way to rev limit. The wheels did not spin at all though. As 4wd is actually not engaged at standstill the haldex needs to detect slip from the front wheels to kick in so a quick release of the clutch will do that.