I read a lot of thread in regards to this error code on my 2001 Audi A4 1.8T but still not able to fix mine. Here's what I've done, I checked the timing it's right on, I change the camshaft position sensor put in a brand new one but that dreadful, teeth-grinding check engine light is still on!!! What now? Where do I go from here? It's like an annoying ex that won't go away! She shows up at my home uninvited. Please help ( with the car that is )

 

Your timing could be off by a tooth, or it could have slipped. It will throw that code when that happens as well. Did you get an oem CPS? If the CPS is bad, you will not get fuel or spark generally....

It's always good to check the timing when it throws a timing related code.

If you read the thread link below, read to the end....and you will see that his timing was off by a couple of notches:

http://forums.vwvortex.com/showthread.php?3215257

 

Also, if you listen to the engine and you hear a little clickety clack (a little sound like a diesel), it could be your cam tensioner going bad....the sound will come from the chain slack hitting the valve cover....

But first I would check to make sure your timing is correct and right on.

 

Thanks for the response. I double checked the timing and everything lines up almost perfectly so im pretty certain the timing is good. just a quick mention, the original motor is AWM and I changed the head on it to AEB not sure if this have anyrhing to do with it.
Do you know the camshaft position sensor plate? it's located behind the cps it provide the reading to the cps, I have two of them the first one is from the AEB head and it has one opening/gap it pops the error code right away. After changing it to the other one which has two or three opening/gap it pops the error code 20 to 30 mins of hwy driving. Do you know if it's the plate(s) that's causing the P0340 error code?