Does anybody know if the headlights can be adjusted vertically on a C6 and if so, where is the adjustment screws.

 

Yes they can be adjusted both vertically and horizontally, there should be two little white caps by the headlamp assembly, take the caps off and turn the phillips screws.
However, manually adjusting the headlights requires a vag com scan tool. The reason for this is because the headlamp adjusting motors will just adjust the lamps back to where they previously were unless you perform the basic settings.
To do that you go into the headlamp control module, go into basic settings data block 1, wait for it to say adjust the headlamps, make your adjustment, then go to data block 2 and it should say settings stored.

 

Thanks again Auditech79. So whats the diff. between a $280 vag com scan tool and the one you see on ebay for $30. The one on ebay comes with a disc and a cable and I assume a laptop is needed.

 

The vag com is free, your just buying the cable. The difference is the ebay cable sucks and doesn't work half the time. Buy the cable from ross-tech, don't go cheap when it comes to electronics.