In regard to your light knock on warm up-
Mine does that too. Just noticable at idle or a bit above, only when in gear, mostly as it is warming up. It is quite subtle. If the windows are down, you don't notice it at all. Heard it about a month after I bought my '02 S6, when it had about 47K miles on it. I noticed it shortly after my first oil change.
Needless to say, I was a little stressed. After spending $26K U.S. on the car I wasn't looking forward to major engine work. My Audi service dept. that did the oil change listened to it and didn't really offer any ideas, suspected it was an inherent engine noise that may not be an issue-and they were right!!
I've put almost 30K miles on it since then, and it hasn't gotten any worse. No one would notice it unless they were really listening for it, but once you hear it I guess you tend to listen for it. I've gotten used to it now that I know it's not evil. Has anyone else experienced this with their 340HP 4.2?