Depends on their schedule. Probably not quite $1000, but more than $500.

 

Had the same problem on my 1998.5 1.8t Quattro. Even after an oil change it would not go away, so I tried a last DIY attempt to try and save some money before taking it in to a mechanic. Getan motor/oil flush or seafoam from (insert favorite auto parts store here), dump it in your oil, let your car idle for like 5-10 minutes (DON'T DRIVE IT, your oil will be thin at this point)shut off wait, do oil change with FULL synthetic.I used someoil flush made for turbo'd carsthat they sold at NAPA, and changed it with Mobil 1.Stopped my ticking and turned off my oil check light. (the red one). IF it is sludge and you do the oil flush, youll notice a looooot of black stuff coming out when you do the oil change.

 

This all depends on what engine you have really, 2.8L = bad oil pump 1.8T = oil pick up tube.
Either way they are both expensive but the 2.8L will have less labor time but more cost of the oil pump, 1.8T will have more labor but cheaper parts.
Both should equal around $800 at the dealer.

 

Audi of America has an extended "warranty" on oil pickup screen plugging due to sludge IF you can show that you have changed the oil every 5K miles. Start digging up your receipts. If your engine is making noise, I would not start it up again, have it flatbedded to a dealer for diagnosis and start collecting your service receipts.