Went through this recently - purchased a used, pre-cut flip key after I'd matched the part numbers. Purchased a pair of key blanks off ebay to fit the flip-key.

Shopped around here for a locksmith or a tech who could reset it, and had one knowledgeable source tell me that due to a recent legal battle between Audi dealers and locksmiths, the locksmiths were capable of doing it, but it was unlikely any really would. Not sure about the details on that, but after a little more fruitless searching, I was back at the dealer.

The dealer cut the key blanks, set the remote, and charged me $170!. The cost of the new remote with key was to have been just under $200 (I got their quote before I started buying up parts). I was told I had to have new key blanks because I had the wrong part, though my blanks mysteriously disappeared during the process.

I learned two things from this. 1) My practice of avoiding Audi dealerships unless it's absolutely necessary is well-founded. 2) In the case of the keys, you're probably going to end up at the dealer, and they're going to get the money they wanted one way or another.

 

has antone actually HAD a key made at VW? that they purchased a blank at VW, and they cut it there?

and what about the remote? DOes Audi still need to immobilize?
My quote from the South Florida AUDI dealer is $90 for the blank, $140 for the transponder, and $135 to progam the immobilizer. THATS A WHOPPING $365,,,,, UGH

 

Even Toyota has similar pricing...
Must be happy Audi does not charge for the price difference accordingly,,