If it's like other Audi's it should be a 10 minute job as it's a direct replacement. Although I've never done a D2... remove the intake ducting and remove the lid to the air filter box, this should be able to move out of the way a give access to the filter. Remove and replace with the K&N. Reinstall everything. 
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Matt
2004 A8 3.7q, 1998 A4 2.8q, 1994 Coupe 2.8q SORN,
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