I finally figured out the coolant leak problem myself. Little Germany is nothing but a rip off. It turned out to be what I thought it was all along, the plastic plug by the thermostat, exactly like this post

Thermostat removed from engine for coolant leak, what is this? Is it normal?

Recap:
After I took my car to Little Germany to get the water pump and timing belt fixed, as this was the very first problem, and they fixed it and it started leaking again I began reading forums online. I then came to determine that it had to be the plastic plug as in the above forum as it made complete sense. I took the car to Little Germany again and told them that was the problem and told them to replace it. They told me they would look into it and called me up and told me that wasn't the problem that it was the thermostat housing. So they fixed it, and what do you know, the next day it was leaking coolant again. I called them and was furious. They told me to take it back and they would diagnose it free. I took it back and they said it was the radiator leaking coolant. I told them not to touch it that I would fix it myself. Well, I kept thinking about it and thought that these people have no idea what they are doing. So I looked into it myself, having not wanting to before as I have never worked on an Audi before. The above forum really helped me out along with others. I worked my way taking apart the plastic plug, and what do you know, the damn plug was ruined looking exactly like the forum I mentioned. How could those morons miss that? They replaced the thermostat and housing and everything and couldn't notice that? That is terrible! I am so furious! I took the part to them and showed them and they couldn't believe it. They apologized and offered me 100 dollars credit. Ha, 100 dollars credit? They can keep it. I will never ever go back there again. They have no clue what they are doing it appears. I wasted so much money having them replace the thermostat housing for nothing.

 

Well, first off great to hear that u have fixed the problem. That is what I love about theses forums and the help they can bring. Sorry to hear about your issues with Little Germany. Trying to give you $100 credit means they obviously know they are in the wrong. You actually could takeoff a step further and demand your money back from previous labor hours of u-needed work. Did u ever have a REAL leak in your radiator? Just more firepower u have in your pocket if you wanted to press this issue. Problem is that this type work happens all the time and most people do not want to do anything about it. The good thing now days is that you can drag their name through the mud on every forum / online site u can find to get your point across. This has become the best way for a checks and balanced system...