As someone has already stated, the method of injection should have something to do with the engine noise. Also, higher compression ratio will always create a different exhaust note, similar to the difference you might see from using a cam with a higher lift, or more aggressive pattern.
Anyways, the 2.0 runs fine. Peak torque is achieved at less than 2,000 RPM, and the car pulls hard right up to redline. The low end torque is great on the freeway, as I don't have to downshift to pass (accelerating from 70mph to 90 mph in 6th gear is fairly comfortable).
The higher compression ratio contributes greatly to the increased torque. Turbo lag is less of an issue with the engine does not rely to heavily on boost to make power. 10.5:1 CR is high for a boosted engine though, and I do wonder how this will affect the engine's ability to benefit from increased PSI without damage. the OEM turbo should be able to put out about 13 PSI. Without extensive cooling measures, I'm not sure that 93 octane pump gas would be enough to support that level of power without detonation. I'll let someone else try it before I do.
Then again, I could be completely wrong about all of this. I don't tinker with things other than pushrod V8's, and I'm not really sure how this knowledge translates to this type of engine

 

is it really a fuel octane related problem?? I know 87 is the lowest crap you can use and will increase tappet/ lifter noise similar to that bioethanol crap which the computer is designed to compensate via the knock sensors so what type of noise are you on about but you loose 30% MPG with that crap

 

so far only the tips have been makin that noise. the manuals dont.

 

not sure if this help or not but i was having a similar problem with my jeep. ended up slinging a rod out the block. never did figure out what was wrong with it

 

I beleive it is because of the fsi.. Even my 07 2.0t(6speed) is a littile loud compared to my Bimmer.

 

Mine is the same thing. It sounds almost like a diesel when stopped at a red light or when normally accelerating. It's the FSI that's causing it, try flooring it from stop and you'll hear a different kind of noise....a good noise (well to me at least)..it's like the engine has two personalities. One mellow and relaxed, the other, mean and pissed off

 

He said it sounds like a lawn mower or a diesel truck! Thats definately not normal even with a high CR or being tip.

Ok well if you other B7 owners say its normal i guess thats just how it is...

 

It also runs a roller rocker setup creating less friction to make 10.5 to 1 compression work. It's nothing like a 1.8t.