I'm pretty sure it's the valve cover gaskets because there is oil on the exhaust manifold and smoke often seeps out from under the hood... thanks for the offer though!

In other news, the heater is fixed. The heater core flush method on http://www.audiworld.com/tech/eng.html worked great.

 

check the steering rack boots if they are f'd up they will let moisture in and rust the inner tie rod end and destroy the rack seal causing a leak that can only b fixed by replacing the rack which will b a few hundred and take 6 to 12 hrs to replace depending on ur skill level

 

Try some stop leak coolant additive for your coolant loss issue. I had the same problem with coolant, just added some silver seal granules in the coolant tank and problem solved. It only cost me $3.

Also when my engine warmed it would sound like crackling or creaking. The silver seal stuff also fixed that problem. Best $3 I have ever spent (I once payed $3 for a lap-dance

 

And...........

you think you've got problems look at my B5's rap sheet.

-Rear Main Seal leak (oil everywhere underneath the car)

-Annoying vibration from engine bay (engine mount, maybe)

-Annoying knocking sound while going over bumps. (Sounds like its coming from
just behind the windshield washer motor)

-suspension not level, leans to one side (Rear left shock or spring might be bent)

-Car pulls to the left even after a wheel alignment (The suspension issue ----
mentioned above might be the cause)

-motor sound like a diesel engine when idling.

-all shock absorber need replacing (though sometimes they work ok, most of --
the time i can feel every little bump on the road.)

-Losing Hydraulic Fluid (leak in the system)

-engine cranks very noisy in the morning when cold (oil pump maybe)

-Heater not working (thermostat)

-A/C not working (Compressor + busted pipe)

-2 breather hoses have massive burn holes in them

-Exhaust system buzzes when accelerating hard, kind of like a hobby toy
plane motor. (Catalytic Converter Maybe?)

 

ouch.... at least you have something good for dukes of hazzard jumps

are you sure the thermostat is the problem w/ your heater?

Also, you can tell if an engine mount is broken if the engine moves when the gas is floored. Have a friend floor it for you (in park of course) while you look at the engine.

 

lol...I have much more problematic cars for Dukes or Hazard jumps. My A4 is the least in need of repair. The most problematic is my 2009 model HSV Clubsport R8.

the thermostat was the problem with my A4 heater. I just the other day replaced it and the heater works great and engine temperature gauge behaves normally. Also fixed the a/c and HYDRAULIC fluid leak (with lucas power steering stop leak) + the 2 breather hoses.

I also added some Lucas Injector cleaner to my fuel tank. The results were a smoother drive and better response and performance and most surprisingly, smoother auto trans gear shifts (strange and unexpected). Good stuff that lucas injector cleaner.

going to get around the other problems eventually but on the plus side no new problems have arisen in a while.