I had the identical issue with my 2004 A8L and the resolution to the problem was to replace the motors for the mirror. Two of them went bad within a few days of each other (left/right as well as up down) both went bad. I located a second hand mirror assembly which was of course in a different color than my car. i had the installer swap out the internals which was fairly straightforward and everything works correctly again. The cost was approximately $200.00 USD for the used part and about the same for labor as it requires removal of the inside door panel to gain access to the mirror wiring.
A new mirror from Audi is prohibitively expensive!
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