What happens to the 1st/2nd gear cluster is really minor, but it does cause shifting problems, even to the extent that the trans won't go into 1st or 2nd.

The sliding sleeve that goes over the 2nd gear engaging teeth (for lack of a better terminology, that is what we call it in a Porsche box) develops a very slight burr...the tolerances are so close that the "burr" can cause a glitch or even cause the trans to not even go into gear because the slider is in an interference fit over the engaging teeth.

A simple fix (yeah...simple....once the trans is out and apart)is to take a die grinder and put a very slight chamfer on the edge of the sliding sleeve and the edge of the engaging teeth...then reassemble the transmission. The only part you would actually need is a small gasket and new trans fluid.

We had this happen to our transmission at the Spoeedvision GT race at Laguna Seca a couple of years ago. We pulled the trans, chamfered the parts and put it back together again...no problems after that.

I think that Audi used to replace the entire trans under warranty, but they may now go in and replace the ist/2nd gear clusters. The parts could be repaired, but I am sure that they just replace them.

Don Istook