So. Chittychittybangbang was right. Sorry for the delay. Its been raining and I've been waiting for the VagCom cable to arrive. I bought the Ebay VagCom cable and used the free trial version of VagCom. Total $20.
The mgr/str reading was 15.8. So after trying to tweak it with the laptop I realised I had to get under the hood and tap it to the right. Came back in and after a few back and forth trips I managed to get it to 3.8. Runs like a charm and I'm totally ecstatic

First time plugging into my car with a laptop and it was surprising easy. I now know how easy it was for the shop to nail me for $200 every time I took my Saab in to be checked.
I cleared a couple engine codes and that was it. I did have trouble with the cable once..."too many communications..." but despite all the online chat about how it is because of the cheaper cable, the fix was simple. I turned off the car and restarted by opening the VagCom and making sure the key ignition was turned on but the car wasn't running.
Other things to be sure of. Your computer's USB com port must be set to the same one that you choose in Vag. Anyone with my problem or VagCom problems can visit an amazingly good Audi link
http://www.audizine.com/forum/showthread.php?t=158766 It walks you through the entire setup process. Make sure you install the drivers from the CD.. beforehand.