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The seals are worn in the cylinder. Cheapest solution is to find one at a salvage yard and replace as to rebuild would be costly. I used to be a hydraulics journeyman and power steering works on the same principles.
Are you sure the drive belt is still on the engine ? The battery light usually comes on when the alternator is not charging the battery, and the power steering is also belt driven. The brake warning light can come on when the brake fluid is low, but also when the battery light comes on.
HEY DO THIS,YOU NEED TO BLEED SYSTEM. TO BLEED POWER STEERING SYSTEM.TO DO THIS.FILL THE POWER STEERING RESERVOIR TO COLD FULL MARK ON DIP STICK.WAIT A FEW MINITES,FLUID LEVEL DROP ADD MORE FLUID UNTIL REACH COLD MARK ON THE DIP STICK..WAIT FEW MINUTES.START ENGINE LET IT RUN FOR 2 OR 3 SECONDS.TURN OFF ENGINE CHECK POWER STEERING FLUID ADD MORE FLUID.DO THIS UNTIL FLUID LEVEL STOP DROPPING.WHEN FLUID LEVEL STOP DROPPING.SAFELY RAISE FRONT OF THE VECHICLE UNTIL FRONT WHEELS DONT TOUCH THE GROUND.START ENGINE UP.TURN THE STEERING WHEEL GENTLY FROM STOP TO STOP,CHECK THE RESERVOIR FLUID LEVEL LOOKS GOOD TURN OFF ENGINE LOWER VECHICLE .LOWER VECHICLE TO GROUND. LET VECHICLE SET FOR 2 MINUTES CHECK POWER STEERING FLUID LEVEL.IF STILL LOW ADD LITTLE MORE.TO THE COLD FULL MARK ON DIP STICK. DONT OVER FILL BECAUSE FLUID LEVEL RISES WHEN IT GET HOT.WHEN DONE IF STEERING WHEEL STILL FEEL HARD TO TURN YOU SEE AIR BUBBLES IN FLUID THATS WHEN FLUID HAS A TAN LOOKING COLOR WAIT 5 MINUTES AND.REPEAT THE BLEEDING PROCESS. DONT DRIVE OR OPERATE VECHICLE ON HIGHWAY UNTIL POWER STEERING HAS NORMAL OPERATION.
Have you verified that the power steering fluid is at the right level? If it isn't, you need to fill it to the proper level using specific Audi power steering fluid (it's a mineral-oil-like fluid, NOT the stuff you buy at the parts store). If you've run the reservoir dry and kept driving, it's likely you've burned out the pump and will have to replace it.
Take the car in for a new serpentine belt and tensioner right away before you destroy the engine. The alternator, power steering pump and waterpump are not turning right now because the belt has come off. The battery will die soon because it is not charging, and the engine will overheat and perform it's own little rendition of the china syndrome. When the red warning lights in the dash come on, it generally means; park it unless you're being shot at.