97 2.8 quattro a4, The clutch engages REALLY far out. Seriously, right at the very end of the distance the pedal travels from the floor until it is completely out. Not sure if this is how audi's are typically or not. It doesn't really seem to be slipping, it just feels wierd. Is this a hydraulic clutch? Is there any way to adjust the point at which the clutch engages?

 

The engagement point you speak of sounds about right to me. Unless your clutch is slipping under load, it should be fine.

As for adjusting the engagement point, I don't think it is something that can be adjusted.

 

+1. Audi clutches engage way out. Just get it in 5th gear around 30mph and floor it. If the clutch is going to slip, it'll slip then. If it doesn't slip, you're good to go.

 

Just how audi designed the stock clutch. It also moves further to the top as the clutch wears. The after market clutch kits are cut to move the release point on the pedal much closer to the floor.