Its not the fuses, I have run a few searches here and on audizine, deducted its the stalk or the headlight computer?

Where would the computer be located that controls the headlights?
I have read some members wiring the lights up to by pass this computer, anyone know how?

 

I think you might have the same problem I just went through. If you turn your headlights on and push your fog lights will the light on the dash say that your fog lights are on? Or if you hold your high beems on will they illuminate?

 

Try spraying RadioShack contact cleaner on the stalk in the steering column.

 

New recall out for audi. 96 and 97 a4's for igntion switch failure causing headlights and wipers not to work.