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i had a problem with a ford explorer like that you should hear a electronic click when you hit the break in the shifter our problem was the glue that held on the handle to the gear shifter got in where you hit the button to allowed to shift in to gear and we couldn't get it in to gear they had to replace the handle and it worked great after that hope this helps
Doubt it as the fault suggests you need to look into the range sensor. If similar to Renault there is a switch on the gearbox that senses where the select lever is (at the gearbox end). If the display is wrong then the sensor needs looking at and either it will need to be adjusted into a set position by moving it, or perhaps the connector to it or wiring to/from it have a fault.
Unless your shade tree mechanic is an Audi expert, go to the dealer who has all the books and diagrams that tell the tech exactly where to look. The other guy may want to replace something just to troubleshoot and the factory tech should know exactly what to replace or which plug is loose.
it is a common problem on the audi auto box's!!!in a nut shell you need a gear box rebuild.NOT CHEEP.my mate has got the same problem on his 2001 audi s6 4.2 v8 and he has been quoted £1350 to fix the problem.