Redline but no power to wheels
 

I have a 2003 Audi A4 with the 1.8T and a 5 speed manual tranny. My problem is that when I put the petal to the floor my rpm's will accelerate normally but once it hits around 3000 rpm's the engine will redline with no power to the wheels. I hooked my OBD scanner to see if there was the engine was spitting a code but there wasn't any. The engine doesn't bog down or sound any different than it did previously.

The engine is fine, but the clutch is slipping. You have been bad and now you need a new cluch.

Seconded. Contact Mike Hood at Ringer Racing for the parts you'll need. He's well known here and offers 5% off just for being a member of Audiforums. Good guy to work with.