When I bought mine it had a very similar noise. The previous owner though it was from closer to the steering wheel but when I looked into it, it was from much further down the column. Plenty of swearing and spray lube later it stopped making the noise.
See here for a similar issue:
http://forum.a8parts.co.uk/showthread.php?t=10532
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Cars...
'93 Audi Coupe 2.0 Alpine White (sold)
'99 Audi S4 Merlin Purple - K04 upgrade to 412hp (sold)
'00 Audi S8 Agate Grey (Sold )
'11 Audi Q7 4.2tdi Unknown Red (Classic Red Pearl Effect - thanks MJ)
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